The Fresh Produce Export Forum (FPEF) has taken issue with the Transnet Port Authority’s request for a 6.28% tariff increase in the 2025-26 financial year, followed by a 10.95% increase the year after.
“Public consultation sessions take place in each port, and during the Western Cape Roadshow it was noted that, out of the 2022-23 budget, only R172 million was spent, 44% less than the R390 million allocated to the Port of Cape Town,” notes the FPEF.
“The question then is, what justifies the increase if the budget is not spent?
“At the same time, the ports of Mossel Bay and Saldana spent R70 million more than budgeted, which for the entire Western Cape region shows a shortfall of R163 million compared to the budget.”
The FPEF indicated that it was escalating the matter via the Agricultural Business Chamber (Agbiz), which is also a member of the National Logistics Crisis Committee.
The Ports Regulator of South Africa, which considers and awards these tariffs, has extended the deadline for the submission of written comments on the new tariffs from 30 September to 7 October.
TNPA applied for a tariff increase of 4.98% for the current financial year, but was awarded 0%.
“The operational efficiencies of the South African ports are declining and that is a concern for both the regulator and port users,” ports regulator CEO, Mukondeleli Mulaudzi, said in an earlier statement recording her decision. “The regulator has noted the deterioration of operational performance in the 2022-23 financial year, with the weighted efficiency gains from operations results recording a 14.19% decrease; a further decrease of 12.05% was recorded in 2021-22 performance.”
Unlike last year, the current year’s roadshow presentations do not include a detailed analysis of capital expenditure performance. In 2022-23, TNPA underspent on capex at four of the country’s eight ports, as well as at TNPA’s head office, lighthouse services and dredging services. At Durban, however, it spent 187% of the harbour’s capex budget.
In 2023-24, according to roadshow presentations, TNPA underspent 91% on capex in East London and by 12% in Durban, while overspending by 26% in the Port of Ngqura and by 4% in Richards Bay.
Freight News
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