Concerns over port tariff hikes

THE application by Transnet National Ports Authority’s (TNPA) to increase its tariffs by 14.39%, more than double its request last year, was met by widespread criticism from various maritime business figures.

While the Port of Richards Bay boasts the world’s largest coal export terminal, South Africa’s escalating port charges (known to be among the highest globally) are believed to stifle the local harbour’s competitiveness in the export market.

‘We support TNPA drive to develop the South African ports, but we do find the requested increases to be significantly higher than expected,’ said Rennies Ships Agency Richards Bay Branch Manager Adrian Smith.

‘We trust that after further review, this proposed increase will be reduced to combat the present international perception that South Africa is an expensive trade destination,’ Smith said.

However, TNPA defended its decision, indicating its ‘proposed pricing strategy is looking into balancing charges in different categories’.

‘It is acknowledged that tariffs in SA ports are very high in certain categories but extremely low in others,’ TNPA said in a statement.

‘TNPA is looking into these imbalances, which are mainly a legacy of the old ‘ad valorem’ wharfage charge and are not based on infrastructure actually used, thereby contradicting the user-pays principle.’

Due to these disproportions, Transnet said it seeks to reduce above average priced cargo dues for containers and automotive roll-on/roll-off (RoRo), while rates for dry bulk, liquid bulk and break bulk will conversely be raised.

‘Whilst the Authority understands its role in facilitating economic growth by providing infrastructure and driving port efficiencies as part of the market demand strategy, it is also mindful of Transnet’s commitment to reducing the cost of doing business in South Africa,’ said the statement.