City welcomes rejection of port tariff increases in Cape Town

02 December 2020

The Mayoral Committee Members for Economic Opportunities and Asset Management, Alderman James Vos, and Transport, Alderman Felicity Purchase, welcomes the decision by the Ports Regulator of South Africa to reject Transnet National Ports Authority’s (TNPA) application to increase the overall average tariff increase by 19,74%. Read more below:

In September, the Mayoral Committee Members wrote to the national Minister of Transport, Fikile Mbalula, and the Ports regulator to make the case against any increase in port tariffs. This argument set out how businesses simply could not afford to absorb any more costs.

‘I oppose any port tariff increases, especially in current times because now, more than ever, we must assist Cape Town products to reach key markets, to help our companies to expand and create jobs. That is why I am very pleased that our submissions have been accepted and that businesses will not have to absorb extra costs in the next financial year.

‘Through the City’s Enterprise and Investment Department, we focus on attracting investment, providing various kinds of specialist support to small and large businesses, as well as investment incentives and skills development, so we can help businesses reach their full potential, export proudly Capetonian goods and employ more people,’ said Alderman Vos.

South Africa’s ports are expensive, and not very efficient when compared with other ports around the world.

‘I, therefore, welcome the decision that port tariffs will not be increased. Our ports can and must play a pivotal role in growing our local economy, and competition among ports will be tougher than ever, given the impact of COVID-19 on world trade. We now have a great opportunity to improve the port operations, and as such, the City has also indicated to Transnet that we can assist in improving its service offerings. I remain hopeful that together, we can improve port and logistical operations to the benefit of South African business, economic growth, and most importantly, job creation,’ said Alderman Felicity Purchase.

It is now up to the TNPA to look at the existing budgets at current tariff levels to fund its operating requirements while at the same time ensuring that it is affordable and progressive for port users.

Published by:
City of Cape Town, Media Office