PORT PRICING

• Port pricing are the taxes and charges which apply to a ship and/or the cargo
on board the ship once it has reached port.

• The rise in these charges may reduce the number of goods arriving at that
port, or otherwise impact the price of doing business.
Different ways of developing of ports through
the world.
• A port becomes a wheel of economic if it runs efficiently. Presently the
function of a port is not only limited but has expanded to a logistical
platform. The efficiency of a port is important in international trade since a
seaport is the nerve of foreign trade of a country.
• A seaport is the compulsory transit point for the bulk of this trade,
Permitting the import of goods, which the country does not itself produce
in sufficient quantity and the export of items which the country has a surplus
or has a competitive edge to produce contributing to the development of its
economy.
• The globalization of world economy has brought about tremendous increase
in exchanges of goods across the world. The world trade also accelerated as
cost of shipping has increased due to the introduction of economy of scale
and the development of technology in shipping.
 The political developments of ports
throughout the world
• During a meeting of the UNCTAD Intergovernmental group of experts on
ports, port commercialization, corporatization, and privatization were
subjects that evokes not only exceptional interest and enthusiasm ,but also
concern among delegates.
• In the last 20 years, there has been a worldwide trends of structural reform
of public sectors. In some developed as well as developing counties, this has
taken the form of commercialization or privatization of public enterprises.
• Globalization, free trade, and the ensued fierce national and international
competition have been the major motors of such changes . According to
Campbell 1994; Milanovic 2012 that Globalization could be described as the
increase in cross-border interdependences and more profoundly, integration,
as a result of greater mobility of factors of production and of goods and
service.
• Additionally, according to him that this remarkable mobility can be attributes
to three (3) major factors.
 Trade liberalization, the abolition of national frontiers, advances in
transportation, information technology, mass media, advertising, secularism
have led to a remarkable convergence of world cultures and consumption
patterns resulting in larger international markets and intensified competition.
• Most gov’t are rather convinced that economic integration, promoted by
globalization of capital markets and the virtual abolition of currency control,
leads to more efficient resource allocation and hence it stimulates growth and
economic development.
• The significant advances in transport and communications technologies have
increased the speed and efficiency of transport and lowered the costs of
communication . These developments have lowered the barriers of time and
distance and give the impression of a “shrinking world”.
Why cargo and cargo movements pose a higher
security threats to port?
• Port security is part of a broader definition concerning maritime security. It
refers to the defense, law and treaty enforcement, and counterterrorism
activities that fall within the port and maritime domain. It includes the
protection of the seaports themselves and the protection and inspection of
the cargo moving through the ports.
• Security risks related to ports often focus on either the physical security of
the port, or security risks within the maritime supply chain.
• Post security is govern by rules issued by the International Maritime
Organizations and its 2001 International ship and port facility security code.
Additionally, some United states base programs have become de facto global
port program, including the container security initiative and the customs
trade partnership against terrorism.
• With the sheer volume of maritime traffic, there is serious concern of
cargo/passenger ship hijackings and pirates attack, as well as accountability
of millions of shipping containers transported worldwide.
 TRANSPORTING CARGO AT
INTERMODAL INTERFACE
• Earlier models of transport development have adopted a unimodal approach
in which road and rails projects were planned and constructed separately
without much consideration for their possible future intergration.
• Intermodal/multimodal transport uses more than one mode of transport
and delivery of goods from origin to destination. Such transport has been
studied in details by policy makers and transport planned, who are
undertaking various policy initiatives to promotes the concept and
implementation of intermodal/multimodal transport.
 The development of intermodal requires the consideration of three of its
attributes: transport links, transport nodes, and the provisions of efficient
service. While there have been efforts in Asia to develop regional highway,
railways, and seaports, inland dry ports remain at an early stage of
development.
 Trade act of 2002, known as the 24-hour rule, is a US Customs and Border
protection regulation that requires the advance cargo declaration of all cargo
onboard a vessel calling or transiting a US port to be submitted electronically
no later than 24 hours before vessel departure from a foreign port of loading.
Section 343 of the trade act of 2002 (public law 107-210,116 stat.933, enacted
on august 6,2002), as amended by section 108of the maritime transportation
security act of 2002,required that the secretary endeavor to promulgates the
final regulation not later than Oct. 1, 2003, providing the mandatory collection
of electronic cargo information by the custom service.