Global Journal of Management and Business Research, B: Economics and Commerce, Volume 21 Issue 5

Fig. 1: Essential data for making a review project If there are no demand or cost studies for the subsequent period, the same trend line in the previous period will be adopted and the same average costs and other non-tariff revenues for the subsequent period, month by month, of the preceding period. In the case of new tariff modalities, without previous invoicing, the port authority must present demand estimates (to be obtained directly from the users), and an initial estimated price, such as an original price. Table 3: Description of Proposed Scenarios - possible simulations SCENARIO DESCRIPTION FEATURES Balanced (linear adjustment) Scenario nullifying the total Operating Profit, considering the subsequent Reference Market, through an identical Linear Adjustment Index for all tariff modalities. Balances the total cost without changing revenue allocations among users. Less impact for users as it only reproduces the status quo. Price = Specific Average Cost Scenario nullifying the total Operating Profit, considering the subsequent new Reference Market, through the calculation of new prices for the tariff modalities, so that the price of each modality is equal to the average cost of each product. Balances total cost by changing revenue allocations among users to equal cost equal to revenue. Impact for users, however, tariffs tend to become more neutral, without cross-subsidies. Positive (cross subsidy with N- products) Positive total Operating Profit scenario, considering the new Reference Market, by calculating new prices for the structure's tariff modalities, so that the price of each modality is equal to the average cost of the product multiplied by its mark-up. The mark-up can be unique for all modalities, or chosen individually, positive or negative, due to demand elasticities (see Ramsey's Rule). Balances the total cost by shifting revenue allocations between users unevenly. Starting from the real average cost, it is possible to practice a flexible commercial policy aiming at maximum revenue capture according to the marginal utility of each user, reducing deadweight loss, without harm to users. Explore the demand curve. A Practical Tariff Methodology for Port Authorities © 2021 Global Journals 15 Global Journal of Management and Business Research Volume XXI Issue V Version I Year 2021 ( ) B I - REFERENCE MARKET OF THE PREVIOUS PERIOD ● Current tariff structure; and ● Profit & Losses Statements according to the Regulatory Chart of Accounts, informing: ○ Operating income, supplementary income, accessory income, income from leasing contracts and financial income, calculated monthly; ○ Financial expenses, costs allocated to leasing contracts and costs of ancillary revenues calculated monthly; ○ Direct costs, indirect costs and administrative expenses calculated monthly II - REFERENCE MARKET FOR THE SUBSEQUENT PERIOD ● Proposed tariff structure and the relationship between the proposed structure and the current one; and ● Profit & Losses Statements according to the Regulatory Chart of Accounts, in a projected manner; III - THE COSTING METHOD FOR THE PRECEDING AND SUBSEQUENT PERIOD ● Percentages to the appropriation of Indirect Costs and Administrative Expenses in the tariff groups; ● The internal weights for distributing the costs of each group in each of the tariff modalities of the respective group; IV - SALES AND PROJECTED DEMAND ● Invoices in the previous reference period, by tariff modality; ● Average monthly demand project, by each tariff modality. As an objective function, the tariff review will assess, for a given port authority, the annual Operating Profit [OP] of each Tariff Group “j” or the sum “k” of them, in the following sequence: Initially, the Operating Profit of the current Tariff Structure will be evaluated, considering the Previous Reference Market of the port administration and then the new proposed Tariff Structure will be simulated, in the following scenarios (Table 3).