Determinants of Port Infrastructure Pricing

Despite many theories on port pricing have been discussed in literature, e.g. cost-based, market based and cost-benefit theories, empirical research on this topic remains very limited. Especially, no study has been found to investigate the determinants of port infrastructure charges. This paper seeks to empirically analyse port infrastructure charges using the data of 159 worldwide ports across different geographic regions. The result of simultaneous equation regression with channel dues and berth occupancy charges as the (dependent) variables representing port infrastructure charges indicates that the pricing of seaport infrastructure is primarily cost-based but other factors also relevant to the port pricing models are actually used by the ports. Among those factors, in particular, demand and the port management and governance model have been found to significantly impact port infrastructure charges. Given the explanatory nature of its research, the paper also discusses the limitations and implications for port authorities, policy makers and future research.