Just as SA shipping lines were beginning to make waves about the late appearance of the Transnet National Ports Authority (TNPA) 2009/10 tariff rates (due to be imposed from April 1) – the TNPA released its new figures on February 26. “Shaved in by the skin of their teeth,” said Andrew Thomas, CEO of Ocean Africa Container Line (OACL) and chairman of the SA Association of Ship Operators and Agents (Saasoa) – whose member lines were getting ready to protest that they needed at least 30 days’ notice to be able to adjust their own freight rates to accommodate the expected increases. However, FTW had to forward the release sent to us by our old statistical friend, TNPA senior researcher (marketing), Kamlesh Kanjee – as Thomas told us he had not yet received his association’s copy. In the release, TNPA professed itself discomfited by the rise in operating costs in the last year, and the need to keep port development up-to-date. However, it was “pleased” said commercial executive, Lauriette Modipane, that its “inflationary adjustment” was only 8.14% across all the services. But, Thomas told FTW, in this time of global economic crisis, an increase in the rates is not the norm. “Around the world,” he said, “a number of terminal operations are actually offering discounts, not looking for increases.” With the major downturn across the whole spectrum of the private sector shipping industry, belt-tightening is now the practice. “Some 11.5% of the world’s container fleet is now laid-up,” said Thomas, “and one would expect that all the stakeholders in the freight chain would be looking at their pricing structures. “And it’s difficult to increase prices in the current economic climate.” At the same time, he added, Transnet should be doing everything in its power to reduce the cost of doing business in SA. “That, after all,” he told FTW, “is their remit according to government.” However, all is not yet lost – with some doubt that TNPA’s proposed rates increase has yet been officially sanctioned. In a convoluted paragraph in her letter, Modipane seemed to be suggesting that the port regulator had still not approved the proposed new tariffs. This in a sentence which – after stating that the National Ports Acts demanded that TNPA publish its new tariff book annually for his consent – said: “Pending an approval from the port regulator, and that, should such a response be forthcoming, we may have to adjust our tariffs accordingly.” This followed Transnet Port Terminals (TPT), which had earlier released its new published tariff rates for the 2009/10 financial year. “In order to sustain current and future investments in the container business,” said the company statement, “and to deal with current operating cost pressures, it is necessary for TPT to increase the container rates for the container and multi-purpose terminals by 12% – with effect from April 1.” This average figure is over 3% above the latest inflation rate, and well above the average, single-digit rates increases that private sector freight operators tell FTW they have been able to impose in this time of economic crisis – if at all – and the massive downturn in business volumes.
