A case study on the effects of the new Johor Port authority (scale of charges) by-laws 2011 on marine charges

Abstract

The marine charges can be defined as the price of the marine services such as pilotage, towage, mooring, berthing and un-berthing.The Johar Port Authority (Scale of Rates, Dues and Charges) By-Laws 1988 under Port Authority Act 196.31s not competitive enough for the current economic condition. The objective of this study is to identify and compare the effect scale of rates, dues and charges on marine services 1988 to the current updated 2011 which is includes the collection data from Johor Port Authority and Johor Port Berhad with the main focus on the economic sector.The total revenue of Johor Port Marine is about RM 56,056,100.00 (2009), RM 57,630,492.00 (2010) and RM 58,294,023.00 (2011). Based on the data collected, there are some changes have been made to improve the old version of tariff, such as the introduction of the consolidation marine charge. According to the result analysis, the pilotage dues and tugboat service charge have increased double. On the other hand, the port dues remain unchanged.Comparing the consolidation marine charges between Johar Port Authority (Scale of rates, dues and charges) by-Laws 2011 and Johar Port Authority (TanjungPelepas) (Scale of Rates, Dues and Chargers) By Laws 2000, there are no much different. According to the data collection, the rate of charges increase proportionally to the length overall of the vessel apply to both ports.However, this new tariff is still unable to increase the profit of Johar Port Marine. According to the data in the appendix the profit of Johor Port Marine in the year 2010 is increase with RM 34 million compare to 2009 with about RM 32 million. But in the year of 2011 the profit is decrease to about RM 31 million. In this study, it can be said that the scale of dues, charges and tariffs have been updated from the former scale of price, to synchronize with the current expenditure faced by the port operator and It is found that the new tariff is quite relevant and competitive.