PORTFOLIO COMMITTEE ON TRANSPORT AMENDMENTS TO NATIONAL PORTS AUTHORITY BILL [B5B-2004]

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1. On page 7, from line 4, to omit subsection (2) and to substitute:

"(2) As soon as this Act takes effect the Shareholding Minister must ensure that the necessary steps are taken for the incorporation of the National Ports Authority of South Africa as a company contemplated in subsection (3)."


2. On page 7, from line 28, to omit subsection (5)

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  1. On page 7, from line 40, to omit paragraph (a) and to substitute:

(a) on a date after the incorporation of National Ports Authority (Pty) Ltd, and with the concurrence of the Minister, the Shareholding Minister may take the necessary steps to convert the company into a public company vested with the authority to own, manage, control and administer ports within the Republic;

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1. On page 9, in line 15, to omit "Authority" and to substitute "Regulator".
2. On page 9, in line 20, to omit "regulate and".
3. On page 9, in line 53, to omit "and regulation".

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  1. On page 11, in line 30, to omit "The" and to substitute "Subject to sections 14 and 17, the".
  2. On page 11, from line 32, to omit subsection (2).

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1.On page 12, from line 36, to omit subsection (1), (2) AND (3) and to substitute:

"(1) The Chairperson and other members of the Board hold office for a period determined by the Shareholding Minister, but not exceeding three years.

  1. (a) The Chairperson may be reappointed for further periods not exceeding three years each.

(b) The other members of the Board may be reppointed to ensure continuity, but may not serve for more than six consecutive years".

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  1. On page 15, from line 50, to omit "National Ports Authority (Pty) Ltd" and to substitute "Transnet Limited or any of its Divisions".

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  1. On page 16, in line 32, to insert the following subsection:

"(1) the main functions of the Regulator are to-

  1. exercise economic, security and environmental regulatory functions in ports;
  2. promote equality of access to ports and to facilities and services provided in ports; and
  3. monitor the Authority's performance of its functions."
  1. On page 16, line 34, to omit paragraph (b).
  2. On page 16, in line 40, to omit "consider proposed" and to substitute "determine".
  3. On page 16, after line 41, to add the following paragraphs:

"(f) monitor the business relationship between Transnet and the National Ports Authority of South Africa (Pty) Ltd to ensure that Transnet does not derive an unfair advantage over other transport companies;

  1. define the market structure for port operations;
  2. promote competition within a defined regulatory framework;
  3. regulate the provision of adequate, affordable and efficient port services and facilities;
  4. investigate or cause an investigation to be held on any matter which affects competition in or regulation of ports;
  5. review pricing or access arrangements in any port in the prescribed manner;
  6. in the prescribed manner regulate the Authority's keeping of financial information in order to facilitate oversight by the Regulator;
  7. mediate between parties negotiating any access arrangement regarding any port service or port facility and, whenever necessary refer any unresolved matter to arbitration."
  1. On page 16, after line 51, to add the following paragraph:
  2. "(h) the filing of prices charged by the provider of any port service other than the Authority."

  3. On page 17, after line 3, to insert the following subsections:

"(4) (a) subject to paragraph (b), the Regulator may, with the concurrence of the Minister, declare a service which is provided within a port by a provider other than the Authority as a vital service and regulate the price of such a service in a manner and for a period as it may deem fit, which may include-

  1. fixing the price, or the average price. Or the maximum or minimum price, or the maximum and minimum prices for the service;
  2. fixing the rate of increase or decrease of a price;
  3. specifying a price with reference to the general consumer price index, the cost of production, rate of return on assets employed or any other specified factor;
  4. specifying a price with reference to quantity, location, period or other specified factor. Specifying a maximum average revenue, or a maximum rate of increase or a minimum rate of decrease in maximum average revenue.
    1. the Regulator may only act under paragraph (a)-
    1. if the service is of fundamental importance for the operation of the port;
    2. if the service is provided by a single service provider;
    3. lack of competition in the provisioning of the service results in exploitation of port users; and
    4. after due consideration of

(aa) the particular circumstances of the goods and services for which the declaration is made;

      1. the cost of making, producing or supplying the goods or services;
      2. the costs of complying with laws or regulatory requirements;
      3. the return on assets in the industry;
      4. the relevant international benchmarks of prices, costs and return on assets in comparable industries;
      5. the financial implications of the regulating the price;
      6. the need to ensure that the costs of regulation do not outweigh the benefits and;
      7. the effect the period of validity of the determination would have on the operation of the port.
    1. Notwithstanding the Authority’s function to provide a port service or to operate a port facility contemplated in section 57, and notwithstanding any agreement or licence to provide such a service to operate such facility, the Regulator may assume any of those functions if the Authority or if the person with whom such agreement has been concluded or such licensee fails to perform, or is incapable of performing those functions".

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1. On page 17, in line 19, to omit "of not more than four" and to substitute "at least six, but not more than 12,".

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  1. On page 17, in line 43, to omit the heading and to substitute:
  2. "Conflicting interests of members of Regulator"

  3. On page 17, from line 44, to omit subsections (1) and (2).

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  1. On page 18, line 17, to omit "given" and to substitute "giving".

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1. On page 25, in line 42, after "may" to insert ", with the concurrence of the Minister,".

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  1. On page 28, from line 5, to omit subsection (1 ) and to substitute:

(1) (a) The Authority must make proposals to the Regulator regarding tariffs, and any amendment thereof, for services and facilities offered by the Authority.

(b) As soon as a tariff has been determined or amended, the Authority must cause to be published in the Gazette and in at least two national newspapers a notice to the effect that the tariffs have so been determined or amended, a brief explanation of the extent thereof and the places where copies thereof can be obtained.

(c) The Authority must annually publish a tariff book containing the tariffs determined by the Regulator."

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  1. On page 28, in line 18, after "fees" to insert ", in accordance with a tariff determined in terms of section 30 (2)(e),".

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  1. On page 34, from line 20, to omit "National Ports Authority Act, 2003" and to substitute "Ports Act, 2004".

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1. On page 34, in line 34, to omit "National Ports Authority Act, 2003" and to substitute "Ports Act, 2004".