February will reveal level of port tariff increase

By February, port users will be told what the next step is in the current three-year (2014/15-2016/17) port tariff structure, according to Mahesh Fakir, CEO of the Ports Regulator. In this, the first year, there was an actual determination based on the previous year’s figures. But for 2015/16 and 2016/17 the figures were what Fakir termed “indicative” – intended to act as a guide to what could be expected. But, in reality, these figures could be somewhat altered, depending on actual volumes etc.A lthough the Transnet National Ports Authority (TNPA) wanted to fix the tariff increases for the full three years, the regulator felt that it was better that the second and third year increases be purely indicative. “This,” Fakir told FTW, “gives the stakeholders some idea of what is likely to happen. But we felt that it was better to review them annually – which helps to avoid big ups or downs at the end of each three-year period.” Since September, the Ports Regulator has been conducting meetings and workshops to familiarise port users and the public with the new three-year structure, and to receive their comments on it. With these comments in mind, the regulator is currently processing the tariff application. “By February, we hope to issue a letter of recommendation on that,” Fakir said.