The Ports Regulator has approved an average increase of 2.5% in port tariffs for the next three financial years. This is opposed to the average increase of 8.4% that the National Ports Authority (NPA) had requested.
Unpacking the Ports Regulators’ decision, CEO Mahesh Fakir has announced that the tariffs for shipping containers and vehicles will not change. Coal cargo and shipping lines’ tariffs for port services will increase by 8.5%.
Fakir says the decision is part of a 10 year strategy to transform South Africa’s port system and the cost of doing business.
Mahesh Fakir says, “The NPA will be allowed to recover 12.414 billion versus the 12.665 billion it applied for, thus comprising 98% of their applied revenue. Ensuring their sustainability and also providing the financial space to ensure that the capital programme included in the application is fully implemented.”