Despite being widely expected, the approval by the Ports Regulator of South Africa of a 7.57 weighted average port tariff increase for Transnet National Ports Authority TNPA has drawn mixed reactions across the maritime and logistics sector. While some experts have expressed disappointment, others say the adjustment is not unreasonable if matched by improved service delivery and investment in port operations.
The decision is not unexpected but it is disappointing for cargo owners and shipping lines. Marine services face an increase of 9.6, while other cargo owners are looking at tariff hikes more than double the current inflation rate, said industry specialist Dave Watts.
The increase will inevitably feed into inflation throughout the economy. It is not a massive amount in absolute terms, but it will certainly not assist in bringing inflation down and that, from an economic perspective, is quite disappointing.
