DEPARTMENT: PUBLIC ENTERPRISES
REPUBLIC OF SOUTH AFRICA
NCOP
QUESTION FOR WRITTEN REPLY
QUESTION NO.: 328
DATE OF PUBLICATION: 19 August 2011
328. Mr R A Lees (DA-KZN) to ask the Minister of Public Enterprises:
(1) What are the tariffs or port charges that are imposed at all South
African ports;
(2) Whether such port charges are less than (a) the global average and (b)
the charges by ports in Mozambique and Namibia; if not, (i) why not and
(ii) what action has been taken or is being taken by him and/or his
department to ensure that port charges at South African ports are reduced
in order to be competitive and lower than the (aa) global average and (bb)
charges at ports in Mozambique and Namibia; if so, what are the relevant
details? CW417E
REPLY
(1) Transnet provided the table below, which indicates the tariffs or port
charges applied at all South African ports, the service rendered by the
National Ports Authority and how the respective tariffs are applied:
| | | |
|Tariffs |Service Rendered |Application |
|Light |The provision of navigation aids|Raised per vessel (per gross ton) at |
|dues |to vessels along the South |the first port of call. |
| |African coast. | |
| | | |
|Vessel |The provision of vessel traffic |Raised per vessel (per gross ton) at |
|Traffic |services, safety of the port |all ports. |
|Services |environment and port control. | |
| | | |
|Port dues|The provision and maintenance of|Raised per vessel (per gross ton) and|
| |entrance channels, breakwaters, |linked to the time that the vessel |
| |turning basins, navigational |remains in the port. |
| |aids (beacons and buoys inside | |
| |port limits) and maintenance of | |
| |dredging inside the port. | |
| | | |
|Berth |The provision and maintenance of|Raised per vessel (per gross ton) and|
|dues |repair quays and other non-cargo|per 24-hour period. |
| |quay (berth) infrastructure. | |
| | | |
|Tariffs |Service Rendered |Application |
| | | |
|Cargo dues |To recover the cargo | |
| |contribution towards the |Raised per unit of cargo, |
| |provision and maintenance of |differentiated between |
| |basic port infrastructure. |different commodities. |
| | | |
|Rentals |Lease of port land to terminal |Rental arrangements including |
| |operators, port service and port|escalations are negotiated on |
| |facility providers. |a case-by-case-basis and are |
| | |not reflected in the tariff |
| | |book. |
| | | |
|Pilotage |Pilotage assistance to vessels |Raised as a basic fee per |
| |entering/leaving the port. |service plus per vessel (per |
| | |gross ton). |
| | | |
|Tug Assistance |Tug assistance to vessels |Raised per service and based |
| |entering/leaving the port. |on the size of the vessel (per|
| | |gross ton). |
| | | |
|Miscellaneous |Tanker fire watch, fire fighting|Raised per service and per |
|Tug/Vessel |and standby services. |hour. |
|services | | |
| | | |
|Berthing |Berthing services to tie/untie |Raised per service. |
|Services |vessels at the berth. | |
| | | |
|Running of |Running of lines for vessels |Raised per service. |
|Vessel Lines |entering, leaving or shifting. | |
| | | |
|Floating Crane |Floating crane services rendered|Raised per service and per |
|Services |to the vessels. |hour. |
| | | |
|Ship Repair |Preparation, docking and |Raised per service. |
|Facilities |undocking of vessels at repair | |
| |facilities. | |
| | | |
|Dry-dock, |Dry-dock, floating dock and |Raised per service for the use|
|floating dock, |syncrolift fees. |of a facility and based on the|
|synchrolifts and| |size of the vessel (per gross |
|slipways | |ton). |
Apart from the services that the Authority itself renders, the Authority is
also the controller of port services and facilities that are provided by
others in the ports. The Authority exercises such control in accordance
with the provisions of the Act, by means of agreements, licences and
permits. The Act and Port Rules issued by the Authority in terms of section
80(2) of the Act and the Authorityâs Guidelines of Agreements Licences and
Permits (25 April 2008), specify the degree of regulation that is being
exercised in this regard.
Section 73(1) (c) and (d) provide that the Authority may charge fees for
the granting of concessions and licences and for any services provided by
the Authority in the performance of its functions. The Authority has
created a separate section in the Tariff Book, Section 5, where the
licence, registration and permit fees are specified. This is summarized in
the following table:
|Fees |Service rendered |Application |
|Port Service Licence, Port|Fees payable for |Raised as a fee for the |
|Rule Licence, Port Rule |licences, registrations |respective licences, |
|Registrations and Port |and permits in |registrations and permits |
|Rule Permit Fees |accordance with section |issued |
| |57 of the Act and with | |
| |Port Rules issued in | |
| |terms of section 80(2) | |
| |of the Act. | |
A copy of the Transnet National Ports Authority (TNPA) Tariff Book for the
2011/12 Financial Year can be obtained at TNPA website:
www.transnetnationalportsauthority.net
2(a) Direct comparison with other ports may not necessarily reveal the true
competitiveness of port charges for following reasons:
When considering port charges around the globe, it is important that the
differences between ports and their funding mechanisms are understood. To
illustrate this point, TNPA, in terms of the Commercial Ports Policy and
National Ports Act, 2005 (Act No. 12 of 2005) has to be financially self-
sufficient with no support from Government. The table indicating
Institutional Responsibility for Investments is attached hereto as Annexure
A.
(2)(b) Quantification of charges anomalies proves to be complex and impact
on the ability to draw fair comparisons in relation to global ports or that
of Mozambique and Namibia. Apart from investment responsibilities, there
are a host of other factors for consideration when attempting to make such
a comparison. Exchange rates, commodity prices, supply/demand and
manufacturing costs are some of the factors that determine the margins that
an importer or exporter earns and will influence their view regarding port
charges.
(2)(b)(i-ii) Transnet has embarked on various benchmarking studies and as
such the Department will wait for the process to be completed - the details
are attached as Annexure B.
In order to address this issue holistically, TNPA is embarking on the
following exercises:
Port Cost Analysis
Commissioning of a study to analyse port costs globally in relation to that
of South Africa on a like-for-like basis i.e. quantification and exclusion
of anomalies discussed in 2(a) and (b) above, taking into account the fact
that TNPA is a multi-modal and multi-port port authority.
Pricing Strategy
The current level of tariffs is mainly in proportion to the value of
tariffs converted in May 2002 into unitised tariffs rolled forward with
annual escalations.