Port ‘monopoly’ slammed – frustration levels grow

The SA shipping industry has hit out at what it described as “the monopoly” running the ports, and slammed its increasing tariffs in spite of an ailing industry and the serious delays in putting the Ports Act into practice. “The industry’s in a very bad way,” said Andrew Thomas, chairman of the SA Association of Ship Operators and Agents (Saasoa). “Cargo volumes are way down, so are rates. There are soft results for all the big shipping lines, huge pressure within the industry for cost savings, and seeking to create a margin where there often is none.” Looked at in the SA context, what happened? “Our frustration levels are growing,” said Thomas. “We are watching trade volumes sinking rapidly, and this monopoly decides to impose a tariff increase. There is still significant unhappiness in the industry about this.” This is added to the fact that shipping lines are also seeing their blood pressure spiking as government adopts a slower than snail’s pace about converting the words of the now four-year-old SA National Ports Act into physical practice. According to Thomas, there’s still no regulator. “Oh, he’s there in person,” he said, “and there’s a board all nicely in place. But until the directives are signed, it can all go nowhere.” The port consultative committees – statutory committees created under the Ports Act – are also still in abeyance. The shipping industry – which was to be represented on these bodies along with government, labour and other stakeholders – considered them to be key points in the way in which SA ports would grow in the future. “But,” said Thomas, “more than a year after industry was urgently asked to comment… Nothing! Where’s the tonnage tax gone, and where’s that White Paper that we were pushed to make our comments on? “Industry is fed up waiting.” The members of the association feel that they have played their parts in what seems to be turning into a bit of a slow-paced melodrama, according to Thomas. “It’s not for want of effort on the part of Saasoa or the industry,” he said. “We’ve always responded promptly to every request made of us. But nothing ever progresses.” Saasoa has directed its complaints at senior government level, and Thomas is hopeful of a positive reaction.