Transnet backs down from tariff increase after customers cry foul

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“No increases will be applied during this time.”

A locomotive belonging to Transnet. Picture: BLOOMBERG/OAKBAY RESOURCES & ENERGY

In November Transnet notified customers of the increases, meant to be phased in between December and February. The company supplies small mines, which do not transport large-enough manganese parcels to receive bulk allocations on Transnet’s rail network, with logistics services to transport the mineral out of Lohatla, Northern Cape, to the port of Coega.

As part of an economic stimulus package announced in 2018, Ramaphosa also promised the review of administered prices — notably electricity, port and rail prices — in a bid to reduce the cost of doing business. Transnet’s refusal to properly consider SCA’s objections to the increases and the very short time over which they would have been implemented prompted the company to threaten legal action over the hikes.

 

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