City of CT weighs in on port tariff submission

The City of Cape Town has opposed a port tariff increase of any kind, claiming the changes would result in job losses. In its submission to the Port Regulator, the city objected to the 18.06% hike in tariffs proposed by Transnet’s National Ports Authority saying they were “unreasonably high and would undermine jobcreation initiatives”. Alderman Belinda Walker, Mayoral Committee Member, said: “A University of KwaZulu-Natal study has indicated that South African ports are already among the most expensive in the world.” Transnet has previously defended increasing its port tariffs in Parliament by claiming they are within international benchmarks. “The study found that ports with much higher input costs such as Antwerp, New York and Rotterdam were less expensive than those in South Africa, as well as importantly being more efficient,” said Walker. According to Cllr Brett Herron, Mayoral Committee Member for Transport, the tariff hike is unrealistic as South African ports are part of state-owned Transnet. “In 2009, ports contributed 67% towards Transnet’s group profits. These profits are apparently used to cross-subsidise other lessprofitable operations. With the current profit margins, the NPA should lower their charges and thus stimulate economic growth,” he said.