SPA revises port tariffs |01 October 2013

Port tariffs have been revised so that the Seychelles Ports Authority (SPA) remains financially sustainable and strategically relevant in the face of increasing challenges in the shipping industry.

The revised Harbour Dues Regulations of 2002, which is a set of tariffs regulated under the SPA Act, come into effect today as S.I 60 of 2013.

The revision is part and parcel of SPA’s strategic vision aiming at improving both competitive and comparative advantages of Port Victoria, in its transformation into a regional maritime hub.

There are two main components of the revision:

• An increase of 25-30% in port tariffs for vessels on international voyages. The objective of this revision is to align old tariffs (since 2002) to the current economic conditions and operational and running costs of the SPA;

• Introduction of new tariffs for domestic vessels (as per schedule 2 of the harbour dues regulations – S.I 60 of 2013). The new tariffs is applicable to all coastal vessels (passenger, ferries, cargoes, pleasure vessels) occupying berth, on discharge, or loading. It is to be noted that artisanal and semi-industrial vessels are exempted from the new tariffs. The introduction of the new tariffs for coastal vessels is part of SPA’s strategy to have all the domestic jetties to generate their own revenues in order to sustain the development of facilities and services on these respective port facilities.

Since the harbour dues were revised 11 years ago, it is evident that the domestic and global economic landscapes have undergone many changes.

From an operational standpoint, the increases in fuel costs and other related products and services have impacted SPA’s revenues, thus limiting its ability to invest in new infrastructural and operational capabilities.

In spite of that these challenges, the SPA with a determined, all Seychellois team has managed to meet most of its short and medium term goals.
 
Even if there will be an increase in port tariffs, Port Victoria remains very competitive in the region. Since last reviewed in 2002, Port Victoria’s tariffs were 40% less than almost all the ports in the region. While all the regional ports like Port Louis and St. Denis have revised their tariffs during the recent years, SPA has not engaged in any revision. Consequently, all the extra costs created by changes in currency exchange rate were absorbed by the SPA. Even with the increase, SPA will remain at 10% cheaper than all most ports in the region. Its comparative advantage as one of the most efficient in the region in terms of cargo handling, stevedoring, tug and other services keeps Port Victoria as  one, if not the favoured port of call of the region in terms of cargo and industrial fishing activities.

Under its current leadership, and the continuous guidance of the Ministry of Transport, the SPA is continually striving to transform Port Victoria into a regional maritime hub, thus building the shipping industry of Seychelles.

The increase in port tariffs is therefore part of a broader picture to ensure that SPA remains financially sustainable and strategically relevant in the face of increasing challenges in the shipping industry. In line with government’s vision, this government-owned entity have to remain profitable so as to continue to sustain its infrastructural and operational obligations, thus safeguarding this extremely important gateway to the Seychelles economy.