TNPA’s new pricing strategy raises subsidisation questions

The Transnet National Ports Authority (TNPA) appears to have pre-empted a major complaint levelled against it in this year’s SA Ports Regulator’s global port pricing comparator study (GPPCS). This is the now longstanding grouse from container shippers amongst the cargo owners that the SA ports’ higher-than-normal container charges and much lower bulk cargo charges mean that containerised cargo owners subsidise bulk exporters. But as FTW reported recently, in its new pricing strategy, it has asked for a massive ramp-up of cargo dues for high-volume commodities – such as coal and iron-ore exports and petroleum imports – and a gradual reduction of cargo dues for containers. But there may be a hidden thorn in the TNPA’s apparent cure of the contentious rates imbalance. The offer, it added, is subject to a simultaneous increase in its revenues by upping port rentals year-onyear. And, as the Cape Chamber of Commerce said, with Transnet Port Terminals (TPT) being the main tenant, it seemed as if TNPA was only transferring costs and not truly reducing them. This comes as a prelude to this year’s engagement and consultation on the TNPA proposed pricing strategy – and will no doubt act as a catalyst to bitter debate between the freight industry and the port authorities.