Port Tariffs Discounting Mechanism Optimization

Abstract

A model for the optimization of the mechanism of tariff discount on overloading is constructed. The conditions under which this discount is advantageous for port are determined. A comparative table of profit at a discount and without it is presented.Dependence of the freight traffic from the rate at overload accepted as linear, and shows the dependence of (also for simplicity and clarity – linear) discount from basic rate on the value of freight traffic. The optimum value of the coefficient of discount from rate of seaport at different ratios is identified from the analysis of such economic and mathematical model.Comparative calculations of profit with discount and without it conducted according to overload of oil at Odessa port production and transshipment complex show that for different possible values of the cost an optimal discount is 10 - 20 % of the basic rate, while freight traffic is increasing by 40 - 95 % and the total profit is increasing by 10 - 25 %, i.e. the proposed discounts mechanism is efficient and very effective. Thus optimum values of the coefficient of discounts in depending on the system settings and conditions when discount is profitable or not are determined.