'It would be catastrophic for consumers if Transnet gets 20% port tariff hike'


37 days ago

The Transnet National Port Authority wants to authorise a port tariff increase of 19.74% for the 2021/2022 financial year.

Such an increase would be catastrophic, according to the City of Cape Town.

The City says the data that informed the call for the increase was gathered before the lockdown and doesn’t factor the recession – the deepest in South Africa’s entire history - that followed as a result.

Refilwe Moloto interviewed Felicity Purchase, Mayoral Committee member for Transport at the City of Cape Town.

Purchase is dead set against the tariff increase.

South Africa’s maritime trade is costly compared to international ports.

A global pricing comparison study for 2019/2020 found container cargo dues are 233% above the sample average, and terminal handling charges are 117% above the sample average.

Purchase argues that tariffs should be reduced in line with international standards.

Everything that goes through the ports – imports and exports – have port tariffs as additional costs. Our port – Cape Town – is one of the most expensive in the world… It affects every single person buying or selling products…

Felicity Purchase, Mayoral Committee member for Transport - City of Cape Town

It has gotten worse [at Transnet] …

Felicity Purchase, Mayoral Committee member for Transport - City of Cape Town

We are so out of touch with costs compared with other ports. To exacerbate that is just inappropriate! … They don’t understand the need to be competitive – the consumers must just absorb everything, arising from their incompetence… [Ports such as] Rotterdam and Singapore are really run as businesses… [the port in Cape Town] is not competitive at all… They must manage their costs better…

Felicity Purchase, Mayoral Committee member for Transport - City of Cape Town

Cape Town’s port is in shambles; it’s a nightmare! … The consumer suffers at the end of the day.

Ronald, CapeTalk listener - Woodstock

Listen to the interview in the audio below.

This article first appeared on CapeTalk : 'It would be catastrophic for consumers if Transnet gets 20% port tariff hike'

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