Port tariff hikes announced

Just as SA shipping lines were
beginning to make waves
about the late appearance of
the Transnet National Ports
Authority (TNPA) 2009/10 tariff
rates (due to be imposed from
April 1) – the TNPA released its
new figures on February 26.
“Shaved in by the skin of their
teeth,” said Andrew Thomas,
CEO of Ocean Africa Container
Line (OACL) and chairman
of the SA Association of Ship
Operators and Agents (Saasoa)
– whose member lines were
getting ready to protest that they
needed at least 30 days’ notice
to be able to adjust their own
freight rates to accommodate the
expected increases.
However, FTW had to
forward the release sent to us by
our old statistical friend, TNPA
senior researcher (marketing),
Kamlesh Kanjee – as Thomas
told us he had not yet received
his association’s copy.
In the release, TNPA
professed itself discomfited by
the rise in operating costs in the
last year, and the need to keep
port development up-to-date.
However, it was “pleased” said
commercial executive, Lauriette
Modipane, that its “inflationary
adjustment” was only 8.14%
across all the services. But, Thomas told FTW, in this
time of global economic crisis,
an increase in the rates is not
the norm.
“Around the world,” he said,
“a number of terminal operations
are actually offering discounts,
not looking for increases.”
With the major downturn
across the whole spectrum of
the private sector shipping
industry, belt-tightening is now
the practice.
“Some 11.5% of the world’s
container fleet is now laid-up,”
said Thomas, “and one would
expect that all the stakeholders
in the freight chain would
be looking at their pricing
structures.
“And it’s difficult to increase
prices in the current economic
climate.”
At the same time, he added,
Transnet should be doing
everything in its power to reduce
the cost of doing business in SA.
“That, after all,” he told FTW,
“is their remit according to
government.”
However, all is not yet lost
– with some doubt that TNPA’s
proposed rates increase has yet
been officially sanctioned.
In a convoluted paragraph
in her letter, Modipane seemed
to be suggesting that the port
regulator had still not approved
the proposed new tariffs. This in
a sentence which – after stating
that the National Ports Acts
demanded that TNPA publish
its new tariff book annually for
his consent – said: “Pending an
approval from the port regulator,
and that, should such a response
be forthcoming, we may have to
adjust our tariffs accordingly.”
This followed Transnet Port
Terminals (TPT), which had
earlier released its new published
tariff rates for the 2009/10
financial year.
“In order to sustain current
and future investments in the
container business,” said the
company statement, “and to
deal with current operating cost
pressures, it is necessary for TPT
to increase the container rates for
the container and multi-purpose
terminals by 12% – with effect
from April 1.”
This average figure is over
3% above the latest inflation
rate, and well above the average,
single-digit rates increases that
private sector freight operators
tell FTW they have been able
to impose in this time of
economic crisis – if at all –
and the massive downturn in
business volumes.