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Big fall in SA export container tariff

The Ports Regulator of South Africa (PRSA) has announced tariff changes for 2020-21, with no net overall change in rates. Within that stability, however, there have been some big changes, most notably a 20% reduction in container export dues

The 20% reduction in export container due is in line with the government’s economic strategy of encouraging exports, although ro-ro dues are unchanged.


In a statement, the PRSA said that the “export biased lowering of container cargo dues would be in the best interest of stimulating local manufacture, beneficiation and employment creation”. There will be no change in tariffs on container imports and the handling of empty containers.


Reductions in container export tariffs are to be paid for by 10% increases in the tariffs on coal and magnetite exports. In addition, marine services and related tariffs are to increase by 5.5%.


The PRSA said that it had announced the changes now so that traders had time to adjust their budgets for the financial year starting in April and to ensure that freight forwarders and agents can pass the benefits of lower tariffs on to cargo owners and end users “for maximum impact to the SA economy.”


The regulator said that the tariff structure should “provide the financial space to ensure that the capital program included in the application totalling R3.872B (US$265M) is fully implemented, despite previous under-expenditure on CAPEX”. It also cautioned against the temptation to cut back on capital expenditure.


Transnet forecast revenue of R13.203B (US$903M) under its proposed regime but the regulator’s tariffs are expected to generate income of R13.145B (US$899M), so the difference is marginal.


Yet again, the PRSA rejected the proposals submitted by Transnet National Ports Authority for average increases of 4.8% over the year, followed by rises of 18.22% in 2021-22 and 8.5% in 2022-23. The regulator did not set tariffs for the two subsequent years but indicated that average increases would be below the government’s annual inflation target of 6%.


Source: WorldCargo News

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