‘Excessive’ permit hikes anger overborder hauliers

Angry overborder hauliers have demanded that the cash-strapped Cross-Border Road Transport Agency rescind its massive increases in tariffs for permits and penalties because it makes it impossible for them to continue trading. Facing a desperate fight for survival, the agency on April 1 hiked the cost of permits for truckers by as much as 240% in order to remain afloat. “We will close our doors in three months if we don’t implement permit tariff increases,” said Maryna Aucamp, the agency’s chief financial officer. She said the organisation required R182 million instead R52 million it has in the kitty just to carry out the basics in terms of its mandate. The agency currently has a staff complement of 175 but needs around 403. “The permit fees have not gone up since 2003, our expense base exceeds income, and all our resources have been depleted,” she said Chief executive Sipho Khumalo said unlike other regulatory bodies, the agency was not given government start-up funds when it began and therefore it had to rely solely on issuing of permits and imposing penalties for those without permits for its survival. But the move could force many truckers out of business. Operator Rea Botha, who said she once used to pay R10 for a permit, called on the Road Freight Association to petition Transport Minister S’bu Ndebele to reduce the prices. Freight and logistics industry representatives turned out in large numbers for a briefing on the new tariffs last week and made it clear they were not happy. The agency said it was sympathetic to the plight of operators and pledged to find a way to make everyone happy. Khumalo said the organisation had faced a number of challenges in the past 12 years that have impacted on its ability to carry out its mandate – one of the reasons why the tariffs had remained the same. The chief executive is part of a new management team hoping to restore the agency to health. Khumalo said it was impossible for the agency’s 77 inspectors to police 52 border posts. “It is no secret we are struggling as an agency to protect those with licences,” he said, adding, however, that every border post had a representative. The permit system forms part of legislative requirements aimed at regulating and monitoring movement of citizens between South Africa and its borders. Fees collected are used by the agency to enforce the regulations, including policing, monitoring and acting on behalf of operators.