New port dues squeeze some exporters into oblivion

Alan Peat
SHIPPERS HAVE challenged the National Ports Authority's promises to negotiate cargo dues (formerly wharfage charges) with industries which feel their exports are being seriously threatened because of the tariff levels fixed for May 1.
There is still confusion amongst major exporters about the stated intention to negotiate less hurtful levels of cargo dues.
"The National Ports Authority (NPA) aims to achieve differentiation through interaction with importers and exporters and consideration will be given to introducing interim cargo dues tariffs applicable to port users within specific clusters," said c.e. Siyabonga Gama.
"This has already commenced and NPA is in the process of engaging cargo owners where commodities may be negatively affected."
But there is still no indication of any industry sectors - apart from coal exporters - which have had their cargo dues adjusted downward. Meanwhile, a number of big shippers have told FTW that their appeals to the port authorities have, as yet, come to naught.
"We welcome the NPA's indication that they are prepared to 'negotiate' with various low-value cargo owners to reduce the cargo dues," said Nolene Lossau, executive director of the SA Shippers Council (SASC), "but we hope that this will be done in a transparent way."
This is certainly not the case at the moment.
The only export group which has revealed that it has had reduced rates applied is the coal industry.
"We know that coal has been agreed to at R2.00 per
To page 20
From page 1
metric ton versus the published tariff of R30.00 per mt for bulk cargo," said Lossau.
But even here she is short of detail.
"Is this special tariff only applicable for coal loaded through Richards Bay Coal Terminal (RBCT)," she asked, "or does it apply to all coal, regardless of where and how it is loaded?
"Perhaps Portnet will be willing to publish details of the cargo types (and tariffs) where 'special' cargo dues have been agreed on."
This would certainly please one major exporter whose negotiations with Portnet have failed up to now but who desperately wishes to be included amongst those receiving that 'special' treatment.
His product is exported both in breakbulk and containerised forms, but it's the flat rate of R735/TEU (twenty foot equivalent unit) that's really hurting his export prospects.
"That's a 46%-50% increase for us," he told FTW.
And, exporting a commodity with a fixed international price, this is enough to put his company out of business in certain export markets.
"We compete with another exporting country at a US dollar a ton better price," said the exporter. "But this increase is in lots of dollars, so we can't compete anymore.
"Freight cost is critical for us, and what Portnet is doing is making our product non-competitive worldwide."
But no-one at Portnet has yet reacted to his pleas.
He, along with others, also questions what the NPA is doing with all the income it makes from these cargo dues - estimated by the SASC at some R2.5-billion a year margin over costs.
"We would like to know what the NPA intends to do with these surpluses they will have in their books over the next three years," said Lossau. "Also, what further changes (we hope reductions) are envisioned over the next two years of the three-year process."