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Tariff Reform in the Port of Piraeus: a Practical Approach

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Maritime Economics & Logistics Aims and scope

Abstract

This paper gives an overview of the main elements of the tariff reform that took place in the port of Piraeus during the last decade. The process of ‘structural’ revisions in many of the port's tariffs took place mainly between 1996 and 2001, which is the period during which, among other developments, container traffic through Piraeus more than doubled. Focusing on the above period and on container tariffs, the paper highlights the motivation for the changes and some of the practical difficulties associated with the process of port rate making in this major Mediterranean port. The tariff reform in some eight other categories that took place in that period is also briefly outlined, and some success and failure stories are described.

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Notes

  1. All prices in euros have been converted from Greek drachmas (GRD) using the central conversion rate of 340.75 GRD per euro (2002). In earlier years, the GRD to euro (or ECU) rate was higher.

  2. This actually happened in the middle of serious labour unrest when government audit authorities insisted that the law had to be applied.

  3. There were 14 such cranes in early 2005.

  4. This number of moves should not be confused with TEUs. An average value of 1.4 TEU per move was typical, but that could vary, depending on the mix between 20- and 40-ft boxes.

  5. With OLP's corporatisation in 1999, OLP's Board was reduced to nine members, with zero port users represented on it, much to their consternation.

  6. Or in principle even less in contracts that guaranteed a prescribed minimum number of transhipment moves per year.

References

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Acknowledgements

This paper is based on my experiences as CEO of the Port of Piraeus from August 1996 to March 2002. I am indebted to Mrs Ioanna Dimitreli-Liakopoulou, Head of OLP's Department for Regulations and Tariffs during my tenure there, for her significant contribution to what seemed like the most extensive tariff reform of the port in recent years. Thanks are also due to Michael Sarlis of Sarlis Container Services for some useful comments on the manuscript, even though as port user he disagreed on all container tariffs. Last but not least, I want to thank the Editor in Chief and an anonymous referee for their important comments on a previous version of this paper.

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Authors and Affiliations

  1. School of Naval Architecture and Marine Engineering, Iroon Polytechneiou 9, Zografou, 15773, Greece

    Harilaos N Psaraftis

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  1. Harilaos N Psaraftis
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Psaraftis, H. Tariff Reform in the Port of Piraeus: a Practical Approach. Marit Econ Logist 7, 356–381 (2005). https://doi.org/10.1057/palgrave.mel.9100143

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  • DOI: https://doi.org/10.1057/palgrave.mel.9100143

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