THE END result of Portnet's tariff reform programme will be to lower total port charges, to reduce wharfage and to establish the impact of port reform on various port users through a value chain analysis
This is the categoric undertaking from Portnet Authority Division (PAD) CEO Siyabonga Gama in response to a list of key imperatives put to the authority by the SA Shippers Council (SASC) following the announcement of its tariff reform programme. (FTW October 27, 2000)
Gama set out Portnet's undertaking as follows:
l To address the imbalance in port tariffs between POD (Port Operations Division) and PAD, ultimately driving costs down;
l To avoid cross-subsidisation with the revenues generated by PAD being allocated to infrastructure development;
l To transform wharfage to a unit-based charge. The principle of charging a unit tariff on value based or what the cargo can bear or the unit/type of cargo is under investigation;
l To support the user pays principle. Service level agreements may well be introduced which will include the service rendered and tariff payable;
l To accommodate all port users, including bulk shippers, either through individual consultation or through their associations;
l To increase efficiency at Portnet terminals using mechanisms like Service Level Agreements, a congestion formula, and other operational agreements with clients;
l To achieve greater transparency in the way that port charges are levied;
Portnet and the SA Shippers Council now seem to be working towards the same goal, was the initial reaction of the SASC's executive director Nolene Lossau.
For the first time in a long time we're on the same side, she told FTW, which is very positive.
There are a few areas where the SASC is not in total agreement with Gama's reasoning, Lossau added. But this will be part of further dialogue, she said.
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