Ferro industry slams 37% tariff increase

'We'll fight it all the way' Leonard Neill THE FERRO ALLOYS Producer Association will 'fight every inch of the way' against the decision by Richards Bay terminal operations to increase shipping charges for bulk materials by 37% effective this month. Producers have responded with shock to the notification which reached them last week, and which stated that the charge was backdated to the beginning of this month. "We will be fighting it all the way. We won't accept this form of unilateral imposition which comes without any prior warning," says Mike Jarrett, chairman of the Association's Transport and Commerce sub-committee. "With the removal of the old wharfage charges and the implementation of shipping charges which decreased incomes, it would appear that Port Operations in Richards Bay believes it can recover its loss of income in one hit of this nature. "The industry now wants justification of this increase. We demand to see transparency in the form of based costings." Jarrett pointed out that it was little more than a year ago that Port Authority chief executive Siyabonga Gama announced an entire revision of tariffs that would lead to cheaper shipping costs. The National Ports Authority has moved some way in that direction by replacing wharfage with the new shipping dues, he said. "But what Port Operations is doing in Richards Bay is just not on, given the situation in today's economics and the trade climate, especially affecting the ferro metals sector which has been showing a declining international price market in recent times." While coal exports through the harbour are not similarly affected, as these are handled privately by the Richards Bay Coal Terminal, other harbour users have been hit with increases. The dry bulk facility now calls for increases between 25-35% according to an aluminium industry spokesman. "Is this a smokescreen to put the operations side firmly in the black, to boost the situation financially prior to planned privatisation and concessioning later this year?" one unnamed source asked FTW.