TNPA abides by Regulator’s ruling

The final version of the new
Transnet National Ports
Authority (TNPA) tariffs
for 2011/12 has just been
published, and the ridiculous
three digit increases for
certain individual tariff
groups of products have
disappeared – and been
replaced by increases of
4.49%, the general increase
recommended by the Ports
Regulator (PR).
This is quite a come-down
from the TNPA which, in
its original application to
the PR, wanted a general
average increase of 11.91% –
but which hiked some of the
individual tariffs by massive
amounts.
Among some of the
bigger export products from
SA that were affected, the
liquid bulk molasses tariff
leapt up by an enormous
864.60%; breakbulk logs by
644.8%; and dry bulk timber
woodchips by 612.37%.
Even at the lower end of the
scale, the big SA export of
dry bulk chrome ore saw its
proposed tariff walloped up
by 117.2%.
The exporters of these,
and other products that had
been hit with inordinately
high individual tariff
increases, immediately made
serious complaints to the
PR – also expressing the
fear that certain of these big
export businesses could get
blown clean out of the water.
And the PR, in turn, made
a legal statement that implied
that TNPA had no right to
push up these individual
tariffs by such enormous
amounts.
After months of serious
legal thinking, TNPA has now come to the conclusion
that the PR decision stands
– and has increased all its
tariffs by no more than the
recommended amount of
4.49%.
Expressing his satisfaction
with this decision by the
port landlords, Andrew
Robinson, director of
lawyers Deneys Reitz and
a specialist in maritime
matters, said: “In my view
this is the correct approach
and the appropriate
response to the PR’s
recommendation.”
But he continued to
adopt a critical stance at
what he termed “the lack
of consultation between
the TNPA and its customer
base” before it decided in
its original application to
push up some individual
tariffs by astonishingly
high percentage increases
– a matter that was also
complained about by the PR
in its official response.
Robinson described as
“surprising” the apparent
lack of transparency by
the TNPA in compiling its
tariff for 2011/2012 – and
“its failure to communicate
with those industries and
stakeholders that would
have been hardest hit by the
individual tariff adjustments
or realignments.”
But he hoped that TNPA
would remedy this lack of
consultation in its future
decisions about rates and
tariffs.
“I have no doubt that
TNPA will continue
with their work on their
realignment of the tariffs,”
he added, “but hopefully
they will adopt a much more
transparent and consultative
process with the relevant
stakeholders.”