New port tariff structure on the cards

Government is responding to complaints by importers and exporters that South Africa’s port tariffs are inhibiting economic growth. According to the Medium Term Budget Policy Statement released together with finance minister Pravin Gordhan’s presentation of his Medium Term Budget, “during the course of 2013, progress has been made in addressing binding constraints to growth in several economic sectors”. These steps include “improving the efficiency, pricing and capacity of local ports to reduce transport costs and enhance competitiveness. “The Ports Regulator maintained 2013/14 port tariffs at their 2012/13 levels and sharply decreased a range of export and import tariffs. A new tariff structure will be phased in from 2014 to 2018," the statement said. “Handling capacity at the Durban container terminal is being expanded." Government is also investing in freight capacity to help alleviate supply bottlenecks. According to the statement, Transnet’s R2.3 billion upgrade of the rail network servicing the port of Ngqura will raise annual manganese export capacity from 5-21 million tons. Coal export capacity will increase by 30% with the introduction of a 200-wagon rail service from the Mpumalanga coalfields to the Richards Bay Coal Terminal.