CITY MAKES THE CASE AGAINST INCREASES IN CAPE TOWN PORT TARIFFS | AfriTV Online

The Mayoral Committee members for Economic Opportunities and Asset Management Alderman James Vos, and Transport, Alderman Felicity Purchase, have written to the national Minister of Transport Fikile Mbalula, and the Ports Regulator to make the case aga...

cape-town, port, tariff, case, south-africa

CITY MAKES THE CASE AGAINST INCREASES IN CAPE TOWN PORT TARIFFS

Published by: A. Odean
10/14/2020 10:38 PM

The Mayoral Committee members for Economic Opportunities and Asset Management Alderman James Vos, and Transport, Alderman Felicity Purchase, have written to the national Minister of Transport Fikile Mbalula, and the Ports Regulator to make the case against any increase in port tariffs.

 

Businesses simply cannot afford to absorb any more costs. Any increases will certainly lead to business closures and job losses. In these difficult times, businesses need support, not more costs. The Ports Regulator of South Africa issued the Tariff Methodology on 6 March 2020 to be used to determine the Transnet National Ports Authority (TNPA) revenue.

 

Using this, the TNPA determined that a tariff increase of 19,74% for the 2021/22 financial year is required, and a subsequent adjustment of -0,29% in 2022/23 and -7,86% in 2023/24. However, the economic performance projections used in the TNPA’s application are based on data collected during the pre-COVID period and therefore, do not take into account the economic devastation brought by the lockdown measures on businesses and our economy.

 

 

Reducing ports costs and improving efficiencies is not only critical in times of relative normality, but in the current COVID-19 context, it is vital that the pursuit of these key objectives should be accelerated. Alderman Felicity Purchase said: ‘The Regulator’s objective now should be to bring port costs down, in line with other international ports, guided by comparative studies. Numerous authoritative studies have found that maritime trade in South Africa is time-consuming, cumbersome and costly in comparison to global benchmarks.’

News images

Tags:

Share

Powered by WebTV Solutions