Sturrock

PORTS REGULATOR RULES ON TRANSNET NATIONAL PORTS AUTHORITY TARIFF INCREASE

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.


Transnet responds

In response Transnet issued a statement shortly afterwards, reading:

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 infrastructure.

We remain firmly committed to regular engagement with the Regulator and await the Regulator's record of decision.