In a statement yesterday (Tuesday) the Ports Regulator of South
Africa mde known its response to the application made last year by
Transnet National Ports Authority (TNPA) for a port tariff increase
averaging 18.06 percent.
The Regulator's response is as follows:
The National Ports Authority has applied to the Ports Regulator of
South Africa for approval of their proposed 18.06% increase in
tariffs for services and facilities offered by the Authority for
the 2012/2013 tariff year, commencing on 1 April 2012 and ending on
31 March 2013.
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 [is] therefore appropriate for the
2012/2013 tariff year.
The Regulator has therefore rejected the proposed 18.06% tariff
increase sought by the NPA for the tariff year 2012/2013.
The Record of Decision shall be published in due course.
In response Transnet issued a statement shortly afterwards,
Transnet has noted the Ports Regulator's decision to award the
National Ports Authority a tariff adjustment of 2.76% for the
2012/13 period. The decision is a result of a comprehensive
consultation process driven by the Regulator.
The decision translates into a real increase in cash flows after
taking into account anticipated volume growth.
We recognise the Regulator's role in determining port tariffs and
we believe this must be balanced by the need to invest in critical
port infrastructure to boost South Africa's competitiveness. As
such, Transnet recently increased its capital investment programme
to R300 billion over the next seven years.
Transnet remains committed to rolling out its capital investment
programme. Consequently, Transnet will be engaging the Ports
Regulator, as part of the Regulator's consultation process with
port stakeholders, on the development of a tariff methodology that
supports our ability to invest in South Africa's logistics
We remain firmly committed to regular engagement with the
Regulator and await the Regulator's record of decision.
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