Strategic Port Pricing and Commercial Billings Management

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Competition among ports today has  intensified dramatically. Port pricing and commercial billings  objectives must ensure that port facilities are used in the most  efficient manner. The pricing system influences the utilization of port  assets particularly when the demand for the services is price elastic.  When demand for a service is inelastic, measures generally more  authoritative than pricing have to be found.

The commercial reality is that port  customers require a balancing of port charges with services provided.  Charging what seems essential must ensure it is competitive at a level  that tends to retain the benefits arising from port improvements with a  view to recovering sufficient revenue to meet financial objectives.

Port customers are demanding for  greater transparency in port charges highlighting a growing need for  more easily understandable and comparable tariff structures. There is a  deployable strategy in port pricing that balances the provision of  efficient services and the costs of providing services in port. Ports  today are either undercharging for services provided or are overcharging  hence the acrimonies. Reaching equilibrium point in port pricing and  commercial billings is proving difficult in ports all over the world.

It is for this reason why this new programme is designed to provide a sustainable port pricing strategy and commercial billings techniques that minimize total logistics costs  from a business point of view while providing an incentive to improve  facilities and services as well as ensuring that the tariff is both  practical and simple.

Aim

The aim of this unique programme is to  introduce to ports new port pricing models that capture both observed  and unobserved costs of providing essential port services. Furthermore,  the programme aims at simplifying the complex procedure of establishing  or changing pricing structure given that port pricing structure should  be sustainable achieving not only present pricing objectives but future  ones while remaining modifiable as conditions change.

Objectives

1. To enable course participants acquire relevant modelling skills in pricing port services.
2. To enable course participants acquire flexible commercial skill in the application of new port pricing models embedded in commercial principles.
3. To enable course participants acquire  port pricing skills that allow proper re-allocating of benefits and  facilitates the comparison between charges and costs, whilst  contributing to the improved utilization of facilities.
4. To equip course participants with the  skills of recovering costs of services during unforeseen or surge in  demand on use of port facilities whilst increasing participants’  knowledge and application of demand sensing in port logistics. 

Targeted Participants

This programme is designed for middle  and senior managers of port authorities, rail transport, container  terminals, inland container depots, transit-transport operators,  regional hub ports, inter-modal transport operators, customs &  excise, shippers’ council, exporters & importers, freight  forwarders, clearing & forwarding agents, shipping agents, students,  researchers etc.

Course Contents

* The Economics of International Trade vs Maritime Economics

* The Context of Port Pricing and Commercial Billings Structure

* Characteristics of Port Tariff Structures

* Traditional Pricing vs New Port Pricing Strategies

* Model of Port Tariff and Comparative Analysis

* Strategic Port Pricing Approaches & Systems by Country

* Procedures and Timing of Port Pricing Revision

* Comparative Studies Port Tariff and Competitiveness

* Models of Port Tariff Structures

* The Trigger Model for Port Tariff Revision

* Pricing Mechanisms for Port Congestion Prevention

* Port Pricing Structure and Shipping Efficiency

* Port Pricing Surgery: A One-to-One Problem Solving Discussion with Course Participants on Home 

Ports Strategic Port Pricing Problems and Solutions

Programme Duration:  19 – 30th October, 2015

Programme Venue:  London School of Economic & Political Science, London United Kingdom 

Choice of Course Fee:

(i) Course fee is £3300.00  British Pound Sterling per participant. This fee covers  tea/coffee,training and materials (without accommodation and lunch)  during training.

or

(ii) Course fee is £4150.00  British Pound Sterling per participant. This covers tea/coffee,  materials,training, hotel accommodation and lunch during training only  (weekends not included). 

 (The course programme and venue may be subject to changes at short notice).

Programme Experts: Dr. F U Laurence – IAPH Coordinator; Dr. Joy U Joseph – IAPH Alternate;

                                             Prof. Dr. Maxwell Kingsley; Prof. Dr. Peter Lange; Ms Helen Smith – IAPH Alternate

                                             Coordinator/Project Manager.