The Ports Regulator of South Africa’s (PRSA) new Port Tariff Incentive Programme (PTIP) is officially under way. Launched in December last year with a closing date of 31 January, it aims to support beneficiation, industrialisation and localisation through tariff regulation. One application has been received for the 2019/20 tariff year, Mahesh Fakir, CEO of the PRSA, told FTW. Applications remain open for PTIP for future years. Fakir said the application was currently being processed.
This involved several stakeholders including the National Ports Authority, the Department of Trade and Industry and the Department of Transport. “There is no guarantee that an application will be approved,” he told FTW. “Every application goes through a stringent review process with either the DoT or the dti, depending on the nature of the application, before it is sent to TNPA along with all the various endorsement documents.” He said the application needed to be submitted with the Transnet National.
Ports Authority’s (TNPA) annual tariff application to the Regulator and the Regulator would give final approval. “The application’s policy endorsement and the TNPA recommendation will form annexures to the tariff application and will follow the same process in terms of publication for stakeholder comment,” said Fakir.
He confirmed that the Regulator would take into account all comments it received as well as conduct its own economic analysis of the application with a final decision published in December in the annual Tariff Record of Decision. “The application submissions require substantial information in terms of trade data, financial information and industry data in order to assist the analysis in determining the benefits to localisation, beneficiation, employment creation, industrialisation or other economic benefits in the interests of the country,” he said.
Fakir said a reduction in tariff – if justified – would be granted through the amendment of a specific tariff line, applicable to anyone who is affected by such tariff line, but emphasised that the effect would also be monitored throughout the period of the reduction and it would also be subject to a sunset review. “Monitoring may take the form of the submission of reports, financials and trade data,” he said. “It will occur for the duration of the incentive and will be unique to each incentive depending on the industry specifics and policy provisions.”
He said a decision to renew the incentive would only be taken once the sunset review had been concluded. Fakir advised interested parties to visit the PRSA website for detailed information on the programme.
