Home FleetWatch 2024 RFA questions the need for tariff increases applied for by Transnet

RFA questions the need for tariff increases applied for by Transnet

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Gavin Kelly, Chief Executive Officer of the RFA: “The claims of productivity improvement cannot be possible when the Terminal frequently communicates equipment shortages and/or challenges on a regular basis.”
Gavin Kelly, Chief Executive Officer of the RFA: “The claims of productivity improvement cannot be possible when the Terminal frequently communicates equipment shortages and/or challenges on a regular basis.”

The Road Freight Association (RFA) has questioned Transnet’s application for higher 2025/26 year tariffs stating that the increases are uncalled for as trucking companies using the Port of Durban on a daily basis have not seen any progress in respect of operational efficiencies at the Terminal.

In a statement issued by Gavin Kelly, Chief Executive Officer of the RFA, he has called for the National Transport Regulator to look at this application for an increase carefully as the RFA feels it is unjustified. The increases include:

  • 6.67% increase on Deepsea Container Empties.
  • 4.57% on Coastwise Containers and Transhipments.
  • 6.69% increase on Container Empty Transhipments.
  • 4.57% on Break Bulk Imports and Exports.
  • 4.57% on Dry Bulk Imports and 7.90% on Dry Bulk Exports.
  • 4.57% increase on Liquid Bulk Import & Export; and
  • 4.57% increase on Automotive Imports & Exports.

“From the perspective of the RFA membership, who battle on a daily basis to get containers into and out of our Ports (more so the Port of Durban) – these increases are uncalled for and will further hurt our already collapsing Port. What are the increases for? Equipment and infrastructure upgrade, repair and maintenance or just “operational matters” like administration, salaries and the like?” asks Kelly.

He refers to an article run recently in a prominent publication titled ‘Durban’s Container Terminal (DCT) implements successful truck booking solution’ and asks “Where did DCT develop the perception that there is a successful truck booking solution?”

According to Kelly, the RFA has received numerous comments and complaints from its members relating to the operation of the “truck booking system” as well as calls for help to resolve the situation at the Port of Durban.

“The article solicited an urgent plea from members – most noting that the article did not portray a true reflection of the daily challenges faced by the trucking industry. They noted that the system did not consider the staging time at Terminal A Check Facility,” he says.

“It would be both interesting – and beneficial – to have the time recorded from the A Check Gate “IN” to Terminal Gate “OUT”, as this will provide a true reflection of how long it takes to service one vehicle at a time. It was further noted that the Terminal only measures the time once the vehicle leaves the A Check area.”

“In addition,” says Kelly, “transporters still struggle with the booking system as booking slots remain ‘not available’ and many hours are wasted waiting for slots to become available. This has the effect that where trucks are not being allocated slots, the statistics become distorted as these do not show the problem (delays/extended time) due to the Terminal keeping the vehicle outside its working area.”

“Less available slots means less vehicles entering the Port precinct which means fewer vehicles have to be serviced within a shift and that shows ‘improved productivity within the terminal’ while, in reality, it is not the case. Less trucks against the terminal equipment availability shows productivity improvement but less movements are being done in totality. Less cargo is moved.”

Kelly says that the claims of “productivity improvement” cannot be possible when the Terminal frequently communicates equipment shortages and or challenges on a regular basis. 

“While it sounds fantastic that slots are made available 60 hours in advance – as opposed to the previous 24 hours advance release period – the reality is that the number of slots available in these 60 hours are not enough to accommodate the volumes of exports/imports that need to access the facility during the same 60 hours.

“Again, it is stated that no booking is required for at least 50 imports assigned to the same transporter from the same vessel – but this does not mean a transporter has 50 trucks to evacuate a group import release, so the daily operational challenges still pose a problem for the transporter wanting to access the terminal.

“Simply put, those trucking companies using the Port of Durban on a daily basis have not seen any progress in respect of operational efficiencies at the Terminal. This brings us back to the query around the application for higher tariffs in the coming year – when little to no progress for the better has been coming from Transnet and its subsidiaries,” Kelly concludes.

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