Cape business welcomes R1bn port tariff cut

"South African port tariffs, especially for container traffic, are completely out of line with tariffs in other world ports and the curb on the appetite of Transnet's 'cash cow' is long overdue," said Michael Bagraim, president of the chamber.

He said the Western Cape's fruit and wine producers who are exporting into a depressed European market would especially welcome the news.

"This is one of the administered price increases the chamber has campaigned against for the last few years. This success will encourage us to become more aggressive in our criticism of airport tariffs, electricity prices and the outdated way in which petrol and diesel prices are calculated."

Bagraim said that it was the chamber's analysis of port tariffs that revealed the extent to which they were inflated in order to subsidise loss-making divisions of Transnet.

"When we found evidence in a WikiLeaks cable that Transnet was in fact using the ports as a cash cow, it simply confirmed what most people in the industry had been saying, but the evidence we produced made it difficult to continue the practice," he said.

The port regulator was due to announce his ruling on Transnet's application for even higher tariffs next week.

"In light of President Zuma's announcement, Transnet will have to make new plans and we look forward to seeing the detail. What is already clear is that there will be a better deal for exporters," Bagraim said.