This week Dr Sonja Grater hosted Dr Mikey Chasomeris of UKZN for a guest lecture and research exchange. There has been discussions with colleagues and lunch with the TRADE team. Yesterday Mickey presented some of his research at the ECON625 class.
The topic of the presentation was South African port governance and pricing – the dilemmas and suggested reforms. Mickey showed interesting facts about the eight main ports governed by the Transnet National Ports Authority. Governance dilemmas arise from the approach of cooperation, and not competition, between ports. For example, there is one tariff book for port pricing, though costs differ. Often there is misalignment between Transnet National Port Authority’s plans and priorities and local industrial development zones. Mickey also discussed the interactions between the TNPA and the ports regulator with interesting simulations of the revenue requirement formula and the pricing increases allowed.