MARITIME REVIEW AFRICA
NEWS ROUND-UP AUGUST 2019
PORTS
Roadshow aims to align port with maritime industry SOUTH AFRICA: The Ports Regulator of South Africa’s (PRSA) national roadshow came to an end in Cape Town after engagements in Durban, Johannesburg and Port Elizabeth. Industry stakeholders and port users used the opportunity to address issues of concern. Having embarked on a long-term port tariff strategy in 2015, PRSA aims to reform port infrastructure pricing over a ten-year period to bring greater fairness, cost reflectiveness and predictability to the South African port system. Transnet National Ports Authority (TNPA) submitted its tariff application to PRSA at the beginning of the month for the 2020/21 financial year and, following the public hearings, port users now have until the 16 September to submit written comments and the Ports Regulator will issue a record of decision at a press conference at the end of November this year. The application before PRSA shows a request for an average increase in tariffs of 4.8 percent for the 2020/21, with an 18.22 percent increase and an 8.5 percent increase for 2021/22 and 2022/23 respectively. The average of 4.8 percent indicated for the next financial year has been determined based on the following
breakdown of tariff increases: Tariff increase of 9.7% on Marine charges (shipping lines); An average of 2.85% increase in Cargo Dues differentiated as follows: 5% on Liquid Bulk and break bulk cargoes; 1.5% on Containers; 1.5% on Automotives; Dry Bulk Cargoes are differentiated as follows: Coal to increase by 7.4%; Ores and Minerals: Magnetite to increase by 7.4%; and Other Dry bulk to increase by 5.%. The Authority’s tariff application is based on the determined required revenue of R13,145m for FY 2020/21 comprising of Marine Business revenue of R9,597m and Real Estate Business revenue of R3,548m. TNPA challenged for action Admitting to “operational challenges,” Acting Chief Executive of TNPA, Nozipho Mdawe, assured delegates at the roadshow that the Authority was aware of the impact and that a “War Room” had been established to deal with these issues.
“We must hold the port system accountable,” she said adding that they were committed to working with the Ports Regulator as well as exercising an oversight role over Transnet Port Terminals. Her team provided additional input on what the Authority intends doing to solve challenges and improve the situation for port users. Feedback from the floor and the Regulator, however, indicates that stakeholders are tired of hearing what will be done, and need to know what has been done and what has been achieved. “All I hear is ‘we will, we intend to, we plan to.’ We need to see more implementation,” said Chris Lotter of PRSA. “We cannot afford not to see actual progress,” he added. Making a strong case for the role of the Port Consultative Committees, Selma Schwartz noted that workshop dates had been set to analyse the tariff application as well as all of the issues raised during the PRSA roadshow in order to make a detailed submission on behalf of port users by the deadline date. Corporatisation of TNPA Following renewed calls from both the Department of Transport as well as the Department of Public Enterprises to follow-through on the provisions of the National Ports Act that seeks to separate the Authority from Transnet, it was not surprising to see the topic up for discussion at the roadshow. Section 3(2) of the Act calls for the incorporation of the National Ports Authority and the Act further stipulates that Transnet will become the sole member and shareholder. According to recent statements by the relevant Ministers, the process to affect this change is underway. Lotter called for Transnet and the Department of Transport to take the issue seriously and noted that some concessions were in place within the tariff application. “TNPA generates significant revenue so when corporatisation happens this must be reinvested within the ports and not redirected towards locomotives and so forth,” he added.
FISHING
Minister makes sweeping announcements to fishing industry SOUTH AFRICA: The incoming Minister of Environment, Forestry and Fisheries, Barbara Creecy, has published a number of announcements in a Government Gazette that include the review of the dates associated with the forthcoming issuing of fishing rights as well as the abolishment of the Fisheries Transformation Council. According to the Government Gazette, Creecy has withdrawn previously gazetted dates associated with the commencement of the next fishing rights allocation process (FRAP) as well as the proposal to review the application form for the allocation of fishing rights. The notice will affect the allocation and management of fishing rights in the hake deepsea trawl, small pelagics, South Coast Rock Lobster, hake longline, squid, demersal shark, traditional linefish, Kwazulu Natal prawn trawl, tuna pole line, hake handline, oyster and white mussel sectors. The notice, undersigned by the Minister states further; “Information concerning the fisheries affected by this notice, including the next fishing rights allocation process, will be communicated to the fishing industry in due course.” In addition, the Fisheries Transformation Council has been abolished with immediate effect and the Minister has reissued a call for nominations for the appointment of the Consultative Advisory Forum. The Forum is tasked to advise the Minister on the management and development of the fishing industry, legislation issues, management procedures, research and the allocation of money from the Marine Living Resources Fund.
Lotter further urged port stakeholders to assist the current process by making detailed and considered submissions by the deadline date of 16 September.
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