Shipper calls for review of all port tariffs

Importers can look forward to significant savings in Transnet Port Terminals’ ‘overstay’ penalties for refrigerated containers thanks to two ‘minor successes’ achieved by one of the more active campaigners for the rights of port users. The first relates to the provision of so-called ‘import free days’. In the case of Cape Town, Port Elizabeth and Ngqura, this has been restored from day of completion (of discharge) plus two to day of completion plus three. This provides significant relief to port users and their service providers when, for example, vessels complete (discharge) on Fridays making the last free day Monday instead of Sunday, our source commented. “It applies to all containers, not just reefers, and is not a new dispensation but simply a case of restoring the status quo prevailing until a few years ago when the reduction was arbitrarily imposed notwithstanding the legitimate objections of port users at the time,” he said. “In plain language – TPT’s abuse of power from a position of dominance.” TPT maintained at the time that it discouraged port users from abusing the cheap storage in the ports. “While that may have been true in some instances, it was not the general rule,” he said. “Effectively, especially in the case of Durban, TPT could then not service the volumes within the too-restricted time arbitrarily determined by themselves, thereby forcing port users into overstay and ruthlessly imposing enormous penalties which turned out to be a wonderful source of additional income.” Port users were therefore delighted when, after some years of on-and-off campaigning, TPT restored the more manageable day of completion plus three. “Ideally we would like SSHEX (Saturdays, Sundays and holidays excluded) as well – which does not preclude upliftment on those days but takes into account the reality of normal working hours of most (widely fragmented) cargo owners,” our source said. The second success relates to the reduction of the overstay penalty for 40ft reefers from R3.510pd last year to R1.824pd this year. While this is, in round figures, a 50% reduction, it is still not enough, he said. “Again we view this penalty as an abuse of power from a position of dominance which violates not only two acts of parliament but the commonlaw principle of unjust enrichment too. “In layman’s terms these statutes require TPT in this instance to prove reasonable cost and there’s no way they can justify R1.800-odd per day. If terminal space is as real a problem as they claim, TPT can exercise its right to remove overstays to an outside customs-bonded facility so there’s no justification for its horrendous penalties. “According to several credible reports – including South Africa’s own Ports Regulator – we are already among the most expensive ports in the world,” he said. “And while 4% may appear not unreasonable in an inflationary environment such as ours (some ports in other parts of the world have not increased their charges in three years – such is ‘competition’!) it’s off too high a base. This leads us to believe the entire tariff will have to be reviewed/re-written to take reality into account until which time the ‘tax on trade’ will continue to stifle trade contributing to inflation and wide-scale unemployment which is a time-bomb waiting to explode