TNPA commts to more substainable tariff relief

Transnet National Ports Authority has hinted at a more permanent ‘discount’ programme in its tariff application submitted to the Ports Regulator for the financial year 2013/14. Chief financial officer Mohammed Abdul told guests at a business breakfast in Johannesburg last week that the once-off R1bn discount programme introduced in April this year had been well received. “The concern was that exporters needed something more sustainable in order to win export business. In order to secure contracts they can’t have this kind of uncertainty,” he said. “With the submission of our tariff application for the financial year 2013/14 you will see that we have introduced something more permanent in terms of the container business and automotive sector – and not only in terms of export but also for imports where we are proposing a reduction of the tariff book on a more permanent basis as well as a further reduction in terms of exports in the automotive sector.” This, he believes, will go a long way to boosting South Africa’s export industry. Sketching the background to the current discount programme, Abdul explained that to determine the tariff for the current financial year, the Ports Authority had applied to the Ports Regulator for a onceoff discounted tariff on certain commodities particularly to support the manufacturing industry. This was in order to address the container imbalance in the number of full import containers as opposed to empties going out. “We therefore put together what we called the cargo dues export discount programme for which R1bn was granted – confined to the export of full 20- and 40-foot boxes and the export of motor vehicles. “We requested a discount of R1 820 of the normal tariff of a 40-foot box and R740 on a 20 ft box and R200 for each car that was exported – and this was introduced in the financial year beginning April 1, 2012. “But once the R1bn is taken up it’s time out.” For the period to October 25 this year the discount has been awarded to 158 000 40ft boxes across all the ports – a value of R288m. In terms of 20ft boxes R192m has been paid out on 260 000 boxes. “Effectively as part of the discount we equated the price of the boxes to a level of R340 – whether they were 20ft or 40ft containers. “On the automotive side 154 000 cars have qualified for the discount translating to R31m. “Of the total we have therefore given back R511.7m in roughly seven months of the year and we believe that this has made a positive impact on cargo owners.” And TNPA has committed to awarding the full R1bn in this financial year. The Ports Regulator was due to begin a national road show this week outlining the details of the proposed programme for the next financial year. INSERT ‘Of the total we have given back R511.7m in roughly seven months of the year.’ CAPTION Mohammed Abdul ... proposing reduction of the tariff book on a more permanent basis.