Transnet to revise port tariffs

Business Report says that Transnet is reviewing its pricing strategy having completed an international ports benchmarking study. Sigonyela could not say whether tariffs would be increased or decreased as a result of the study.

Transnet had applied to the Ports Regulator of South Africa for an increase in its tariffs of 18,06% for next year but this amount may be changed as a result of the benchmarking study.

The port charges are based on allowing Transnet to recover its investment in owning, controlling and administering ports and its investments in port facilities. Some of the capital costs are funded through state and municipal budgets in South Africa.

Transnet says it needs R9,6-billion for the 2012/13 tariff year and this includes the return on capital of R5,2-billion and depreciation of R1,3-billion. The port have operating expenses of R2,9-billion and taxation charges of R786-million.

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