The SA Ports Regulator has refused the application by the Transnet National Ports Authority (TNPA) for a general 5.4% tariff increase and additional individual tariff increases for the 2013/14 financial year. Indeed, after “considering the application and all submissions submitted in this regard by all parties”, the regulator concluded that certain cuts in tariff rates were due. The first will cut export costs and hopefully stimulate further exports. Cargo dues for full container exports, the regulator demanded, be reduced by 43.2%. Second is also an export stimulant, with the regulator cutting dues for motor vehicles exported on own wheels – as roll-on, roll-off (ro-ro) cargo – by 21.1%. The third is for full container imports – where the dues are to be cut by 14.3%. The remainder of the tariffs in the tariff book are to be retained at the same level they were over the 2012/2013 tariff year. The initial reaction from members of the freight industry who talked to FTW was one of delight, although the moaners amongst them harped on that SA ports still remained amongst the most expensive in the world. But there was also an element of hesitation, with a couple of the commentators expressing the concern that – unless the regulator had full support from the government, in the form of senior parties in the department of transport – there might be an adverse reaction to these cuts in port income. But, when quizzed about this, Ports Regulator CEO, Riad Khan, told FTW that there would be no such reaction from government. Indeed, he said: “The parliamentary portfolio has said that this is the way to go. “No-one has interfered with anything we’ve done since the SA Ports Regulator was implemented. There have been three ministers of private enterprise and three of transport, and not one has interfered with the process at all.” The adjustments to the TNPA’s application, Khan added, were “the tariff reflecting reality”. “Our research shows that costs for containers and vehicles are too expensive, and this determination follows that ‘reality’ principle. Also, the reactions at the road show we have conducted around the country supported such a move.” The full reasons for the regulator’s decision are not yet available.
