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Economic Regulation

Tariff Strategy

In 2015, the Ports Regulator (“the Regulator”) published a Tariff Strategy (“the Strategy”) which aimed to create a tariff structure in the ports system that was reasonable, fair, transparent, efficient, and effective. The Strategy is a long-term port tariff reform which envisaged implementation over an initial period of ten (10) years.

In March 2020, the Regulator reviewed progress made with regards to the implementation and revised some aspects that needed to be enhanced. It is important to note that the principles contained in the strategy including the cost based, user-pay principles, have remained the same.

Given progress on implementation of the Strategy within the 10-year review period, the Regulator, together with the ports sector, intends to reflect and possibly review some assumptions beyond the initial 10-year period.

Notably, assumptions impacted on by exogenous (including economic) and endogenous (including managerial) factors plaguing the port system. This also presents an opportunity to reflect on progress regarding the envisaged reforms in marine charges and Real Estate (rental) income.

As you would have noticed, the process of the Tariff Strategy review has commenced with the publication of the consultation document on 31 March 2024 for stakeholder comments with a deadline of 31 May 2024.

Only a few submissions were received from stakeholders in response thereto. The Regulator is planning a programme which will include engagement sessions and further technical assessments by external experts towards a revised Tariff Strategy.

As such an extension is granted for a period of one (1) month, ending 30 June 2024, for port users and stakeholders to share their views.

Comments must be sent to contact at no*********@po************.org. Our contact at the Regulator is Mr. Pule Mothiba at pu***@po************.org, Tel 031 365 7800.