City of Cape Town is challenging a proposed increase on the port tariffs, Newsline

Cape Town – The City of Cape Town is challenging a proposed increase in the port tariff by the Transnet National Ports Authority (TNPA).

The City has written to the Transport minister to oppose the proposed increase of 19.74% for the 2021/22 financial year.

According to the City the economic performance projections used in the TNPA’s application were based on data collected during the pre-Covid-19 period and did not take into account the devastation to businesses and the economy brought by the lockdown measures.

Mayco member for economic opportunities and asset management James Vos said: “I oppose any port tariff increases, especially during these times, because now more than ever we must assist Cape Town products to reach key markets to help our companies to expand and create jobs.

“Through extensive interactions with business port users, exporters and importers, City officials have compiled a list of challenges faced by businesses, including a weak national economy, a weakened currency, forced and self-imposed shutdown of business activities and the loss of shelf space, for many locally based exporting companies, to competitors in other markets.”

The Ports Regulator of SA issued the Tariff Methodology in March to determine the TNPA’s revenue. Using this, the TNPA determined that a tariff increase of 19.74% for the 2021/22 financial year was required, and a subsequent adjustment of -0.29% in 2022/23 and -7.86% in 2023/24.

Mayco member for transport Felicity Purchase said: “The regulator’s objective now should be to bring port costs down, in line with other international ports…”

Transport Minister Fikile Mbalula said he had seen the letter: “I can’t respond to that right now but I will respond formally. We … are processing that matter.”

Cape Argus