Transnet National Ports Authority has been given an averaged 3.32% tariff increase for the following financial year 2022/2023. This is the ruling of the Ports Regulator of South Africa.
Announcing this yesterday (1 December 2022), Dr. Tshisikhawe Victor Munyama, Acting Chairperson of the Ports Regulator of South Africa said that on 1 August 2022 Transnet National Ports Authority (TNPA) submitted to the Ports Regulator of South Africa its Tariff Application in terms of Section 72 of the National Ports Act, 12 of 2005.
TNPA applied for an average tariff increase of 9.24% for the period 1 April 2023 to 31 March 2024, together with indicative tariffs of 25.84% for the period 1 April 2024 to 31 March 2025 and 3.64% for 1 April 2025 to 31 March 2026.
Having provided TNPA a four-month period of assessing the application, TNPA was granted an opportunity to further motivate their request for a 9.24% tariff increase.
“During the four-month period of assessing the application, the Regulator afforded the Authority an opportunity to submit additional information substantiating and motivating for the request of 9.24% tariff increase, to which the Authority has utilised,” said Dr. Munyama.
He said the Regulator’s application of the regulatory framework, including the Multi-Year Tariff Methodology, aims to provide certainty for investments, sustainability of the industry, quality of service and reduction of costs of doing business to ensure affordability and accessibility to the port system.
“The Regulator is also cognisant of the economic challenges facing the country, both from the underlying structural challenges, but also more pressing the after-effects of the COVID-19 pandemic and flooding on the port system and particularly the port users,” he said.
“After considering the application; the Tariff Methodology and Tariff Strategy; submissions from stakeholders during the public consultation period; and information at the Regulator’s disposal; the Regulator has concluded that an appropriate overall weighted average tariff adjustment for the financial year 2023/24 is 3.32%.
* Marine services and related tariffs (Sections 1-8 of the Tariff Book, excluding Section 7
that deals with cargo dues) are to increase by 8.6%;
* All Container cargo dues are to remain unchanged;
* Dry Bulk Coal export cargo dues to increase by 6.0%;
* Dry Bulk export of Magnetite cargo dues to increase by 6.0%;
* Dry Bulk Iron Ore export cargo dues to increase by 6.0%;
* RoRo cargo dues are to remain unchanged;
* Liquid Bulk cargo dues are to remain unchanged; and
* All other tariffs are to remain unchanged.
❖ As the Authority has not furnished the Regulator with adequate information on the proposed tariff amendments applicable to hull cleaning services and edible oil pipeline, the Regulator is not in a position to make a determination on the proposed tariff book amendments.
❖ All Marine tariffs (Sections 1-8 of the Tariff Book, excluding Section 7 that deals with cargo dues) for existing commercial South African flagged vessels as well as commercial vessels registered in South Africa from FY 2019/20, will receive a 30% discount applicable year on year until reviewed by the Regulator.
❖ All Marine tariffs applicable to ship building and ship repair (inclusive of dry docking and booking fees) will remain unchanged pending the presentation of a ship building and ship repair strategy by the Authority in consultation with the industry.
❖ All license fees for port activities as per section 5 of the Tariff Book will continue to be discounted by 30%, and continue to be paid in equal installments on an annual basis over the period of the license.
❖ As per section 4.1.1. of the Tariff Book, a continued reduction of 35% in port dues applicable will be allowed in the following instances:
* Vessels not engaged in cargo working for the first 30 days only;
* Bona fide coasters;
* Passenger vessels; and
* Small vessels classified under Section 4, Clause 2 when visiting a port other than their
▪ registered port; or
▪ vessels in port for longer than 30 days not engaged in cargo working or undergoing repairs will be liable for a 20% surcharge on the incremental fee of port dues.”
❖ Further, a reduction of 60% will be allowed to vessels calling for the sole purpose of taking on bunkers and/or stores and/or water or a combination of all three, provided the vessel’s entire stay does not exceed 48 hours. This reduction will not be enjoyed in addition to the 35% reduction granted for vessels not engaged in cargo working for the first 30 days only, bona fide coasters, passenger vessels and small vessels classified under Section 4, Clause 2.
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