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Portnet's tariff review meets stiff resistance - Freight & Trading Weekly - 18 February 2000 edition -
- Freight & Trading Weekly
18 February 2000 edition
Portnet's tariff review meets stiff resistanceby Alan Peat |
PORTNET'S 2000 tariff review is out - but is already meeting stiff resistance. While Transnet managing director Mafika Mkwanazi is confident that progress is being made with Portnet’s tariff reform initiative, the consultation process has only just begun, and will be too late to affect this year’s April 1 tariff review. Due to normal operating cost pressures experienced by Portnet,” he said, “we have no option but to proceed with the annual tariff review. While the controversial import and export wharfage tariffs have not been changed, all the other services are facing an increase, with the simple arithmetical average running at about two-to-three points above the current inflation rate of 5,2%. Bulk terminal and cartage rate increases have yet to be decided, with the terminals and the ports each responsible for its own local rate rise. The good news this year was that Portnet issued the rate increases sufficiently before the imposition deadline to allow for client reaction. But that is likely to be adverse. Shipping line and other executives in the freight industry have already complained bitterly about the continuing rise in Portnet rates while port productivity continues to drop. Said one line executive: You are supposed to get what you pay for. But when you’re getting nothing surely you should pay nothing, not face Portnet’s continual above-inflation increases. The Container Line Operators Forum has just been meeting to discuss the issue but no official word is yet available. However, it is expected that comment is likely to be condemnatory.### Copyright Now Media (Pty) Ltd |
