Transnet on 'excessive pricing' probe

SA’s Competition Commission (CC)
recently said it was investigating
state-owned logistics company
Transnet for excessive pricing and
giving preferential treatment to some
consumers at its ports.
But, said Peter
Newton of Seaboard
International:
“Apropos that
‘investigation’ came
a comment from
New Zealand of all
places. It was that,
all of 10 years ago,
the then Container
Liner Operators’
Forum (Clof) proved
to the very same CC
that, contrary to the
arbitrary/uninformed
claim of then Transnet
CEO, Maria Ramos,
SA ports were in fact
the most expensive in Africa and most
of the rest of the world.”
So he suggested that the current
investigation “is simply re-inventing
the wheel, and a tactic to do nothing”.
Newton, however, pointed to the
dilemma that would arise should the
CC decide to make the necessary ruling
to overcome this Transnet pricing
problem.
“This,” he said, “would involve a
re-structuring of the modus operandi
and cost structures of both Transnet
Port Terminals (TPT)
and Transnet National
Ports Authority
(TNPA). This
beginning with the
culling of superfluous/
outrageously
remunerated
‘management’ – which
is unlikely.
“So where to now?”
Transnet claims
it is trying to make
logistics less expensive.
“Transnet has noted
the processes started
by the Competition
Commission,”
spokesman Molatwane
Likhethe told FTW. “We will cooperate
fully with the inquiry.
“Transnet is comfortable and
confident that its processes are fair,
just and in line with relevant legal
requirements.”
INSERT 
Transnet would
need to start
with the culling
of superfluous/
outrageously
remunerated
‘management’.
– Peter Newton