Regulator slashes port tariffs

Tariffs should not subsidise poor performance

SOUTH AFRICA: Transnet National Ports Authority’s inefficiencies were once again highlighted yesterday when the Ports Regulator of South Africa (PRSA) effectively slashed port tariffs.

“The operational efficiencies of the South African ports are declining and that is a concern for both the Regulator and port users,” noted Mukondeleli Johanna Mulaudzi, Chief Executive Officer PRSA in her statement.

The proposed tariff increase of 4.98% by the Authority, includes an amount of R1,267 million retained in the Excessive Tariff Increase Margin Credit, but Mulaudzi contended that this should not be used to “subsidise inefficiencies” or for additional profit gain.

Taking a bold decision, the Regulator has concluded that there will be no overall effective weighted average tariff for the 2024/25 year and that specific dues will effectively decrease:

• Marine services and related tariffs (Sections 1-8 of the Tariff Book, excluding Section 7 that deals with cargo dues) are to increase by 2.98%
• All Container cargo dues are to decrease by 3%
• Dry Bulk coal export cargo dues to increase by 3%
• Dry Bulk magnetite export cargo dues are to increase by 3%; o All other dry bulk cargo to are to increase by 2.7%
• RoRo cargo dues are to decrease by 3.%
• Liquid Bulk cargo dues are to decrease by 3.%
• All other tariffs are to decrease by 3.%.

Other notable outcomes include:

• A 30% discount for all commercial vessels flagged in South Africa.
• The approval of a hull cleaning permit fee of R18,959.00
• A 30% on all licence fees applicable per port.
• A 60% reduction in dues for all bunker-only calls that do not exceed 48 hours.
• The denial of a request to introduce a motor vehicle permit fee.

Given the ongoing lack of capital expenditure on infrastructure projects, Mulaudzi also noted the Regulator’s intention to monitor the execution of planned projects to increase capacity, efficiency and port safety.

Corporatisation

The anticipated corporatisation of the Authority was also addressed during the session which was announced by the President in 2021 and followed by the gazetting of the intent to corporatise by the Minister of Public Enterprises.

The follow through on these pronouncements have, however, been slow despite the Regulator’s inclusion of requirements should this occur.

“The challenges in operational inefficiencies in the ports system cannot be ignored,” said Mulaudzi who highlighted factors such as the lack of fit-for-purpose marine craft and cargo handling equipment which continue to “expose exporters and importers to the loss of business”.

African leaders must find ways to encourage ongoing oil and gas investments A fitting dedication