Transnet National Ports
Authority (TNPA) has had the
sense not to ask for too much.
That was the initial reaction
of the SA Ports Regulator to
this year’s tariff application by
the ports landlord, according
to CEO Riad Khan.
“It was reasonably prudent
of them to act as a responsible
corporate citizen,” he
told FTW, “and achieve a
balance with what they can
realistically justify.”
In its application, the TNPA
noted that the application of
the requested tariff levels
on the projected volumes
for financial year 2013/14
should result in the authority
achieving the required marine
business revenue. And its
overall revenue requirement
was calculated as R10.275
billion – comprising real
estate revenue of R1.856 bn
and marine business of
R8.419 bn.
Justifying its requirement,
the TNPA said: “In terms
of the Port Directives, when
considering the proposed
tariffs for the authority, the
regulator must ensure that
such tariffs allow the authority
to:
a) Recover its investment in
owning, managing, controlling
and administering ports and
its investment in port services
and facilities;
b) Recover its costs in
maintaining, operating,
managing, controlling and
administering ports and
its costs in providing port
services and facilities; and
c) Make a profit
commensurate with the risk of
owning, managing, controlling
and administering ports and
of providing port services and
facilities.”
Its tariff application, the
TNPA added, had been
prepared using the revenue
requirement methodology,
and the application of this
methodology resulted in
a revenue requirement of
R10.978 bn for the FY 2013/14.
But this was adjusted
downwards.
Given the non-finalisation
of an agreed tariff
methodology and related
parameters the authority
summarised its tariff
application as being:
a) A capped revenue
requirement of R10.275 bn,
comprising marine business
revenue of R8.419 bn and real
estate revenue of R1.856 bn;
b) Capping of the revenue
requirement to
R10.275 bn being premised
on the authority submitting
a multi-year tariff
application next year with a
smoothed tariff adjustment
approximating CPI + 3% per
annum with a floor of 8.5%;
c) Tariffs:
● Minimum export tariffs
of R6.00 per ton for dry bulk
and bulk commodities;
● Reduction in certain
container and automotive
tariffs;
● 5.4% tariff adjustment of
FY 2012/13 tariff book for all
other quoted tariffs;
● Introduction of a bunker
fuel levy of R15.00 per ton at
the Port of Durban.
While Khan said that he
did not think that the freight
industry would object too
much to this year’s tariff
application, he did expect
some adverse comment to be
raised about certain items at
the Ports Regulator roadshow,
due for a nationwide tour in
November this year.
Copies of the tariff
application are available
from the NPA website: www.
transnetnationalportsauthority.
net.
You are also invited to
submit written comments
on the proposed tariff
increases by December
14 to tariffcomments@
portsregulator.org.
CAPTION
TNPA must be able to recover its investment in managing port services and facilities.
