Industry advocacy organisation Manufacturing Circle has slammed as “unwelcome” the move by Transnet Port Terminals (TPT) to increase tariffs by 9.25%.
Executive director Coenraad Bezuidenhout said TPT should review the increase in light of the impact on manufacturers, many of which depended on imports and exports for their competitiveness.
“Transnet should in principle review this increase if it does not want to be the source of further job losses in the economy. In the long run, there needs to be an urgent review of the regulatory regime that results in such inappropriate cost increases at such an inappropriate times,” he said in a statement.
Manufacturing Circle warned that manufacturers were already being rocked by the protracted unresolved strike in the platinum sector, which had amplified weaknesses in the domestic market.
High logistics costs, Bezuidenhout added, contributed to South African manufacturers finding it difficult to increase export volumes despite the rand’s recent weakness.
On March 28, the Ports Regulator of South Africa determined that the Transnet National Ports Authority could raise all cargo dues by 5.9% from April 1, while bulk cargo dues for coal, manganese and iron-ore were increased by 8.15%.