Major factors that are considered to determine lease charges of container terminals are, among others, construction cost of berth, discount rate, financing cost, and size of annual equivalent recovery. This paper aims to calculate construction costs at PECT and GCT and their annual equivalent recovery on the basis of historical data, and to identify whether or not the relationship of the above result and current lease charges at the two terminals are justifiable.

This paper is concerned with developing a standard costing model based on the case study of PECT and GCT in order to improve operation efficiency and design business strategy. In doing so the model can be a useful tool to analyze current calculation system of lease charge at the two terminals and to judge whether the level of lease charge currently applied to them is justifiable for thier profitability.