Tariff hike for container terminals

Feb 16, 2004
Author: P&S

SA Port Operations (SAPO) has begun advising clients of a 6% increase on container tariffs from 1 April at the container terminals in Durban, Port Elizabeth and Cape Town.

SAPO chief executive office Tau Morwe says the increase is within the inflation target range, despite the capital expenditure requirements for 2004/05 being double that of previous years due to the demand for capacity and an operational need to replace equipment.

“At the time of implementation of Tariff Reform, SAPO communicated to the market that on completion of this process it would revert to normal inflationary adjustments, taking cognisance of future capital investments and actual cost to provide differentiated service levels. SAPO’s tariff increases for 1 April 2004 lie within the inflation target range.”

Morwe said the Durban Container Terminal is currently handling 1.3m TEUs and is operating well above its design capacity of 950,000 TEUs.

“The delivery of the 60 straddle carriers, amongst many other management interventions, has resulted in a steady improvement in the terminal’s service levels. The anticipated commissioning of three second-hand Super Post Panamax gantry cranes in August 2004 and the delivery of three additional new Post Panamax gantry cranes in 2005 will undoubtedly enhance the terminal’s ability to meet service level expectations.”

He said the associated total cost these improvements exceeded R700m.

Turning to the Cape Town and Port Elizabeth Container terminals, Morwe said they have been steady performers in terms of meeting shipping lines’ expectations.

“In the Cape Town Container Terminal R316m is being invested in the acquisition of two container cranes, 26 straddle carriers, reefer points and stacking capacity.”

SAPO is also spending R29m on four additional straddle carriers and container crane refurbishment for the Port Elizabeth Container Terminal.

Schedules of the new container terminal tariffs have been distributed among SAPO clients. Details of tariffs for the car, breakbulk and bulk terminals at the various ports would be communicated individually.

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