Regulator awaits reaction to block on TNPA tariff increase

There had been no official reaction from Transnet National Ports Authority (TNPA) by the end of last week, after the Durban-based national Ports Regulator, Riad Kahn, turned down the authority’s application for a 10.62% average tariff increase for the financial year 2010/11. Kahn told FTW on Friday afternoon that he had heard nothing from Transnet, “although I did read in the press that they were looking for our reason for determining that 4.42% was an appropriate increase”. Despite there having been no such direct request from TNPA, Kahn added that the regulator’s office was currently busy drafting out the full reasoning behind his decision. “Once this is finished, we will get it approved by the members of the board, and will then officially release it to TNPA.” FTW also questioned Kahn earlier in the week on whether an appeal from the TNPA against his decision was likely. He did not utterly reject the possibility. However, if no appeal is forthcoming, the 4.42% tariff increase decision will stand, and be applicable from April 1. The Ports Regulator of SA was established under the provisions of the National Ports Act under which his main functions are to: • Exercise economic regulation of the ports system in line with government’s strategic objectives; • Promote equity of access to ports and to facilities and services provided in ports; • Monitor the activities of the TNPA to ensure that it performs its functions in accordance with this act; • Hear complaints and appeals under the NPA.