Tariff reform: the key to Portnet's competitiveness

M.B.A.Competitiveness is defamed as ensuring that the port and transportation system can meet the requirements of its users. For the port to compete successfully for business in both domestic and international markets, it must have the ability to move people and cargo efficiently, reliably, and at a reasonable cost, without infrastructure impediments or congestion delays. Competitiveness is the key aspect that influences the meaningful participation and survival of the South African port system within the global environment. For exporters and importers, competitiveness translate into a demand for intermodal services that provide speedy and efficient movement of cargo through ports and terminal transfer facilities to land side transportation. It also translates into a demand for ready access to the transportation information that is needed by all players within the maritime environment. There is a strong belief and a sense of urgency among some port stakeholders in South Africa, who maintain that there is not enough spending on construction, operations and maintenance for ports. The following capacity issues will influence the future competitiveness of the port system and infrastructure: • Technological advancements in terms of processes and systems; • Hinterland connections; • Infrastructure usage in and around the ports; • Increasing dredging requirements. Thus, there is a need to improve the productivity, throughput capacity and accessibility to meet the expected growth in international trade. The port authority's tariffs in future should be based on the principles of user pays, cost-based tariffs and adequate return on capital employed. The South African port system should remain financially autonomous and not require subsidization from the State