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.