CFO services case studies |
Tariff review for an East Malaysian sea-port
- Why was Deloitte engaged?
The clients’ tariff has not been reviewed for over 20 years. Reduction in tariff rates for one business segment was imminent. The client needed recommendations on revised tariffs for its other business segment in order to maintain its cash flow position.
Deloitte was engaged to develop the revised tariffs in line with global practices, whilst maintaining the port’s competitiveness.
- How did Deloitte add value?
The client’s cost of providing services, current and projected, were determined via the Activity-Based Costing (ABC) method, and used as the basis for developing the revised tariffs. As a result, the client was able to recover the loss in revenue from the reduction in tariffs in the one business segment, and maintain its positive cash flow position, whilst considering future capital investment.
