The Chamber has welcomed the decision by the Port Regulator to grant an average port tariff increase of only 2.5% instead of the 8.45% requested by the National Ports Authority.
South African port tariffs are very high by international standards and, ideally, they should be reduced, but a small increase is a step in the right direction.
Port tariffs add to the cost of exports and everything possible should be done to help exporters ensure that they remain globally competitive.
We have recently seen the Airport Company reduce tariffs substantially and one of the results is the growth in air traffic, particularly from overseas.
Lower port charges could mean more business. An example is the fact that very few ships were called in to Cape Town to take on bunkers because they said the port tariffs were too high. This is an example where a reduced tariff could mean more business for the port. Another one is that lower port costs could encourage more cruise liners with their thousands of tourists to visit the city.
The new tariffs will become effective from April next year to March 31 to March 31, 2019.
President of the Cape Chamber