‘Arbitrary’ Sapo increases raise objections

Productivity should be part of the equation ALAN PEAT THERE HAS been a stream of calls to FTW complaining about the April 1 increase in SA Port Operations (Sapo) tariffs. The main overall opinion was expressed by two of the majors in the shipping line/seafreight industry, Flemming Dalgaard, MD of Maersk-Sealand in SA, and Franck Kayser of APM Terminals. And the gist of their comments? None of the increase pain, without reciprocal gain. SA rates stand at a middling level in world terms, Kayser told FTW. “South African charges level with the world average, but efficiency does not,” he said. “But it’s difficult to argue about the increases because we don’t know the financial situation of Sapo.” However, arbitrary annual increases are just not on. “My opinion,” Kayser said, “is that increases need to be justified - for example, by investment for greater efficiency.” Dalgaard, meantime, told FTW that his management team had looked at the increases from a number of angles. His finding from this was again anti-arbitrary increases - but increases going in hand with productivity improvements. “Otherwise,” he said, “they only serve to escalate port prices and are not to the benefit of the shipping lines, the rest of the freight industry, the consumers, or the SA economy generally. They should, Dalgaard insisted, have been discussed further with the port users and other involved parties before being implemented.