Tariff charges for port users up by 5.79%
The Ports Regulator of South Africa has granted the National Ports Authority a tariff increase of 5.79% for the next financial year.
The Transnet Ports Authority had applied for an 8.02% tariff increase in August.
CEO Mahesh Fakir made the announcement during a media briefing in Durban earlier today - saying port services will now cost more.
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Chris Lotter, who's with the Ports Regulator says in arriving at the decision, they had to find a balance between the sustainability of the port system and the needs of port users in a time where economic growth is slow with ressure on imports and exports.
Lotter says last year the regulator was able to avoid changing tariffs on an average basis.
"This year we've managed to be below inflation tariff. A large part of that is due because a number of years ago the regulator realised that we might enter a time where this balancing act will become more difficult and we've created the savings kitty by port users.
"This year the regulator opted to utilize some of that in order to bring tariffs down to below inflations so except for shipping lines all tariffs will be expected to be below inflation for next year," he said.
Meanwhile Mohammed Abdool, who's with the National Ports Authority has thanked the regulator for responding to their application in advance - which he says will help in Transnet's future planning.
Abdool says the decision will now be assessed.
"All together we are pleased to actually have received the ROD as I've indicated timeously. This relationship has certainly matured to a point whereby there's a better understanding of both sides of the table - the ports authorities side as well as the force regulator in terms of what our obligations are to this country. his particular outcome helps a great deal in us forging forward with the market demand strategy," he said.
