High port costs are believed to be the driving force behind the decline in vessels calling for bunkering services in the country, according to a study presented by University of Kwa-Zulu Natal maritime studies professor, Trevor Jones. Real concern exists that Transnet National Port Authority (TNPA) will increase tariffs, thus rendering South Africa uncompetitive. Tahra Sergeant, regional manager of the International Bunker Industry Association (IBIA) Africa, said the decline in vessels calling for bunkering services was “frightening” and that South Africa could ill afford to increase tariffs at all. She said a further study was under way, looking at the ports of Gibraltar; Tenerife; Port Louis, Mauritius; Walvis Bay; and Durban, to make a comparison of the port charges and all related fees. “This will give us a clearer indication of where our ports are in relation to others when it comes to port costs and bunkering.” According to a spokesman for the Port Liaison Forum, concerns over bunkering tariffs were amplified following the publication of the latest TNPA tariff application. In the application, TNPA stated that it would only make a tariff application for bunkering in the 2018/19 financial year, as it had to first complete a cost analysis. “The port system has, in the recent past, invested capital to service bunkerage in the ports. Currently, these new facilities do not attract a specific tariff charge and have been considered part of the normal liquid bulk cargo dues tariffs applicable in the port system,” the application reads. “The Authority is of the view that the principles of cost recovery on a user-pay principle should apply and that these facilities must be paid for by the customer who benefits from this usage.” TNPA further pointed out that its investment into bunkerage facilities at the Port of Durban had improved operational efficiencies, increased vessel turnaround time and a reduction of risks in refuelling. It has also created a dedicated berth in the Port of Durban.
