Lack of consultation draws industry ire

ALAN PEAT THE FREIGHT and trade industries have strongly criticised the Transnet parastatal for a serious lack of communication right after it announced through the press its tariff increases for 2005/2006 fiscal year. Major representative bodies in both sectors have accused Transnet of not living up to its promises to consult the major stakeholders beforehand. The figures released last week were that general rail freight tariffs would rise 3% from April 1; port cargo dues paid by cargo owners would increase 1% and container handling tariffs 5.7%. Dave Rennie, CE of Ocean Africa Container Shipping (OACS) and chairman of the Container Liner Operators’ Forum (Clof), commented: “We don’t know the port cost increases yet, and if any of the figures differ from those announced,” he said. “Clof is disappointed, as a fairly significant stakeholder, because they had already given us the assurance that they would meet with us to discuss the intended tariff increases, and give us three-months notice (of the new rates).” The forum has already written to the CEOs of SA Port Operations (Sapo) and the National Ports Authority (NPA) to express its disappointment, and to find out what the increases are overall. A similar path is being followed by the SA Shippers Council (SASC). “We were disappointed that the first we heard about the new tariffs was in the To page 16 From page 1 newspapers,” said executive director, Nolene Lossau. But even the figures announced do not meet with approval amongst shippers. “The NPA 1% increase in cargo dues goes against our agreement of three years ago that rates would be reduced,” Lossau told FTW. “And the NPA is still bleeding off about R2-billion a year into the Transnet coffers – so why an increase at all? “The handling increase, at 5.7%, is not below the producer price index (PPI) – business’s inflation rate – nor the CPIX (the consumer price index used by the government as a financial measuring tool),” she said. The PPI rate for the year 2004 was 0.6%, and CPIX 4.3%. Lossau did, however, welcome Spoornet’s general freight increase of 3% in comparison to the big increase last year – when Transnet’s tariff increases averaged 16.5%, and a whopping 35% percent in the previous year. Colin Schultz, distribution manager for SANS Fibres, and chairman of the Western Cape Cargo Owners Association (WCCOA), also expressed himself disappointed that no consultation had taken place. And, singling out Spoornet’s new 3% general freight rate increase, Schultz pointed to road transport rates (excluding any fuel price surcharges) having increased by 2.3% per annum last year. “Rail is just pricing itself out of business,” he said. Peter Lewin, director of MSC Logistics, and chairman of the Container Rail Operators’ Forum (Crof), believes Spoornet has shown extremely good intentions to accommodate business with the 3% increase, but he’s concerned about service delivery. While he fully supports Transnet CEO Maria Ramos’s initiative to attract more road traffic to rail, he questions Spoornet’s ability to cope with any additional traffic with its present infrastructure shortfalls. Lewin was also disturbed that, as major stakeholders, Crof was not consulted by Spoornet before the tariff increases were decided. Attempts by FTW to find out the full list of tariff increases met with a brick wall.