Regulator cuts back ports tariff hike
Johannesburg - The Ports Regulator of SA on Tuesday rejected the National Ports Authority's (NPA's) application for an average 18.06% increase in tariffs for the 2012/2013 tariff year.
In considering the NPA's tariff application and various submissions, comments of stakeholders and the regulatory framework, the ports regulator concluded that a 2.76% tariff increase was a reasonable increase and therefore appropriate for the 2012/2013 tariff year.
In his state of the nation address on February 9, President Jacob Zuma said that the government had also been looking at the necessity of reducing port charges, as part of decreasing the costs of doing business.
"The issue of high port charges was one of those raised sharply by the automotive sector in Port Elizabeth and Uitenhage during my performance monitoring visit to the sector last year.
"In this regard, I am pleased to announce that the port regulator and Transnet have agreed to an arrangement which will result in exporters of manufactured goods receiving a significant decrease in port charges during the coming year, equal to about R1bn in total," he said.
The only difference is that a "small" increase in port charges is not a "decrease" in port charges!
How does the reduction of port charges for exports benifit the South African consumer? The exporter is not going to reduce his price to the foreign customer thus he is ust going to get richer.... I would like to see a reduction in port costs for imports thus reducing the cost of the imports to the consumer. This should be only earmarked to necessary imports like Rice, crude oil etc. ie Goods which we don't produce ourselves but are necessry.
AS a company we can manufacture goods for export and compete successfulyy with other companies from other coutries. However we lose out in winning export orders due to our logistics costs from South Africa to other countries being significantly more expensive. Cheaper outbound logistics means more export business. That means we employ more people, make more profit and hence pay more tax and earn foreign exchange.
And yes we can compete against India, China etc. As a company you have to be effective, work on low margins and high customer service and quality
The only problem now is that Transnet will simply push through excessive rate hikes in the Business units where no Regulator exists - Like Transnet Freight Rail. This is the only Business unit which can directly impact the Local Consumer pocket, as cheap, efficient rail get cargo movement away from more expensive Road and onto Rail. But because no Regulator exists, Freight rail is increasingly uncompetitive in the Local Transport Market.