A Diagnostic Approach for Cost Minimization and Profit Maximization between User Agencies and The Service Providers in Indian Ports /

Abstract

The objective of the paper is how to reduce the cost of port services to the users of the port without affecting its profitability. They range from service quality and value for money to investment returns and economic efficiency. The rationale behind the port costing is that it enables port management to control costs and operations and allocate resources efficiently. In spite of this, one of the major setbacks that Industry has been facing is the cost of doing business which is highest compared with the rest of the world. Cost minimization is the task to reduce costs by consuming resources more efficiently. Ports ultimately want to reduce costs and increase production. The question they must answer is, how to accomplish this task?