Transnet National Ports Authority (TNPA) said in a statement that they acknowledge the Record of the Decision announced by the Ports Regulator of South Africa, which details a 4.4% weighted average tariff adjustment, File Picture: Leon Lestrade/independent media
Transnet National Ports Authority (TNPA) says it will examine the Record of the Decision regarding the 4.4 weighted tariff adjustment that was approved by the Ports Regulator of South Africa.
TNPA said the 4.4% weighted average tariff adjustment resulted in a revenue requirement of R15.31 billion.
The ports authority had applied for a 7.90% tariff adjustment, with a revenue requirement of R15.66bn.
“The Record of the Decision will be examined against considerations made in the application, and if deemed necessary, further communication will be made with the Regulator,” TNPA said.
It said the regulator’s decision had been made after presentations during public consultations, stakeholder feedback and with regard to the updated inflation as per the Medium-Term Budget Policy Statement of November 2024.
TNPA added that marine services and related tariffs will increase by 6.15% (this excludes section 7, which deals with cargo dues).
“Cargo dues categories will increase by 3.40%, except for Dry Bulk imports and exports which are to increase by 4.00%. Tariffs for empty containers on Deepsea and Transshipment will be equalised to Coastwise tariffs.”
TNPA said it will prioritise strategic development projects and heighten capital expenditure to support operations and enhance business value for port users and customers.
Malcolm Hartwell, Norton Rose Fulbright director and master mariner, said that the Ports Regulator Record of Decision reflected three decisions of importance to the shipping and ports industries.
“The first is that marine services are to increase by 6.15%, the second is that all cargo dues are to increase by 3.4% and the third is that the existing 30% discount on marine tariffs for South African flagged vessels will be extended.”
Hartwell added that all three of these decisions will be welcomed by the affected parties.
“The increase in costs for shipowners for marine services is in line with inflation and is less than half of the 14% that Transnet applied for. Although this effectively means that although adjusted for inflation, the tariffs have not been reduced to make South African ports more competitive with our neighbours, at least they have not increased.”
Hartwell said that the below inflation increase for cargo dues is in line with the Ports Regulator’s stated policy of effectively reducing cargo dues.
“This was because, historically, cargo dues effectively subsidised the marine services provider to shipowners. Maintaining the 30% discount will probably not induce any shipowners to move their ships to the South African flag, but at least continues to provide relief for South African flagged ships. Although the Ports Regulator’s tariff increases will be welcomed by shipowners, port users and importers and exporters, they will place Transnet under further financial pressure.”
Hartwell added that Transnet is in the process of dealing with the numerous factors that have affected South African ports’ regional and global competitiveness.
“All those initiatives have been welcomed by port users and importers and exporters. The weighted average tariff increase of 4.4% for the next financial year however means that Transnet will have to continue to try and find alternative funding for its operations until they return to profitability. This in particular applies to its crippling capital debt which is in the region of R140 billion.”