Shippers to get port tariffs upfront

A new scheme by the SA Ports Regulator (PR) will allow importers and exporters to plan ahead, while knowing what the Transnet National Ports Authority (TNPA) annual tariffs are likely to be for the following three years. “The determination of a multi-year tariff methodology is yet another step in the process towards regulatory certainty,” according to Mahesh Fakir, CEO of the PR. “Whilst retaining the fundamental elements of previous determinations, the present tariff methodology will be applicable to the 2015/16-2017/18 tariff years – with the aim of continued improvement in the level of transparency and consistency in the tariff setting process.” And just what the TNPA is applying for as its fixed tariff for the 2015/16 tariff year and indicative tariffs for the 2016/17 and 2017/18 tariff years will be made public next month. Fakir told FTW that the TNPA’s application was due to be submitted to the regulator at the end of this month. And, as soon as it is received, it will appear on the regulator’s website: http://www.portsregulator. org “We then plan to have a road show travelling around the country in mid- September,” Fakir added. “Here the TNPA will present its tariff application for the three-year period and public comment will be welcomed.” The PR is still busy fixing up the dates and locations for this road show. But the venues, according to Fakir, are likely to be Cape Town/ Saldanha, Port Elizabeth/ Coega, Durban/Richards Bay and Johannesburg. All the information that is gathered during these September road shows will again appear on the PR website. Public comment on the proposed three-year tariff schedule should be submitted to the regulator. “The regulator will, after assessing the TNPA application and taking into account all public comments, publish a record of decision (ROD) with a fixed tariff for the 2015/16 tariff year and indicative tariffs for the 2016/17 and 2017/18 tariff years,” said Fakir. And there is another protective element for port users in the PR’s planning. The regulator has allowed for an annual review and an annual adjustment of tariffs within the three year period. This as opposed to fixing the prices for the period. “This protects users from possible large step changes in the tariff,” Fakir said. “In addition, unlike other regulated industries like electricity or oil and gas pipelines, there are large variations in the users and usage of port infrastructure and services. An annual review allows adjustments in prices to be more efficiently and appropriately allocated/ distributed to users than an adjustment after three years.” Fakir is also positive that this plan will create greater certainty from a planning and investment perspective – both for the TNPA and port users – over the next three years. “We believe that this provides the necessary certainty and space for adjustments until most of the elements of the tariff structure have matured and settled,” he said.