Threatened export prospects force the issue
A TIMBER trader - whose export prospects were threatened by a big hike in Portnet's cargo dues - has negotiated a cut rate with the port authorities.
His unitised bundles of sawn pine timber - a breakbulk cargo valued at R2 400 per metric ton - had paid R20.40/mt under the now demised ad valorem wharfage regime. But, he reported to FTW, under the new cargo dues, he was being hit with the standard breakbulk rate of R70/mt - "a mere 245% increase", he complained.
This sort of unexpectedly high increase in port costs threatened the export prospects of his low-value, price sensitive product, Peter Vermaak, director of Abroad Spectrum, part of the Windworth group, told FTW.
But, after extensive negotiations with the National Port Authority (NPA), Vermaak has been granted a cut rate.
"In principle," he said, "we have been offered a rate of R11/mt, an actual reduction in the amount we previously paid."
Vermaak is now awaiting his contract number from the NPA, the official confirmation of the new rate which will apply.
