'Ports regulator legislation needs more teeth'

While the National Ports
Regulator has played an
important role in keeping
Transnet National Ports
Authority (TNPA) tariffs
in check, for it to be truly
effective in safeguarding
port users’ rights, the
enabling legislation needs
more teeth.
So says Andrew Pike,
head of ports, terminals
and logistics
corridors at
law firm,
Bowmans.
“The
supply
chain industry has been
concerned for a while that
while TNPA is regulated,
its operational arm –
Transnet Port Terminals
(TPT) – is not,” he says.
Pike points out that this
has led to the perception
by some port users that
port operation charges
are excessive. This despite
the fact that TPT chief
executive, Karl Socikwa,
maintains they are well
within the global
norm.
Pike says
the enabling
legislation of
the Ports
Regulator
– which
appears
in the
amended
National
Ports Act 12 of 2005 – is
inadequate in its current
form as it prevents the
regulator from properly
performing its functions.
“According to the Act,
the regulator consists
of a chairperson and a
minimum
of six and a
maximum of
12 members
with suitable
qualifications
or experience
in economics,
law,
commerce,
ports, the
shipping
industry and
public affairs.
But with the
exception of the CEO, all
Ports Regulator members
are part-timers with their
own work responsibilities,”
explains Pike. “This means
it is very difficult for a
quorum to attend meetings
and vote on a decision
around a complaint or
appeal.
“Furthermore, the
funding of the Regulator is
woefully insufficient, being
a fraction of the regulatory
budget of the TNPA,
to enable it to properly
perform its functions.
Arguably, the funding
which it does receive from
Parliament compromises
its independence as the
TNPA is a parastatal
institution,” comments
Pike.
He suggests that the
solution could be to amend
the Act to provide the
Regulator with more
powers, as well as providing
a means for the Regulator
to obtain independent
funding.
“In order to ensure that
meetings and so decisions
may occur more swiftly, a
full-time tribunal ought
to be
established.
Further,
the TNPA
ought to be
regulating
TPT (and
other
terminals)
and the Ports
Regulator
ought to be
empowered
to monitor
and ensure
that the NPA implements its
powers pursuant to the Act,”
says Pike.
“With a clearer mandate
and sufficient funding, it
will be better enabled to
perform its function as the
ports watchdog,” he adds.
INSERT & CAPTION
The enabling
legislation of the
Ports Regulator is
inadequate in its
current form.
– Andrew Pike