GRTU takes lone stand on new port tariffs

As new port tariffs came into force yesterday, it was still unclear whether the rates are actually cheaper, as the government has claimed they would be, or more expensive.

The Chamber for Small and Medium Enterprises - GRTU stood its ground, insisting the tariffs were not lower than in the previous system, even though the Shipping Agents Association, the Federation of Industry and the Malta Maritime Authority claim otherwise.

The MMA last Thursday published new tariffs in a bid to lay to rest the confusion that reigned over the new system since it was first introduced at the Freeport a month ago.

However, the GRTU was quick to counter, publishing its own table to illustrate its point that not only have the tariffs not gone down but they have gone up significantly.

Both the FOI and the shipping agents agree with the MMA's assessment that tariffs have gone down. But the GRTU's director general Vince Farrugia held fast to his stand, saying that bills which the GRTU had in hand showed there had been no drop in rates.

A few agents who commented on this point generally disagreed with the GRTU's point. Some argued that the reductions were insignificant and that the system was still riddled with complexities, but most declared that there had not been an increase in tariffs.

One agent said his company had refunded the extra money it had charged in the past weeks over the Freeport charges. "We issued some 800 cheques, which was a massive administrative feat, all because of the incompetence of how the new system was introduced," a spokesman for the company said.

The Freeport announced a further reduction of 50c in tariffs yesterday, a move which agents were not too happy with because of the umpteenth change they would have to make to their computer systems to accommodate it.

The president of the Shipping Agents Association, Ernest Sullivan, said the agents were in agreement over the rates that had to be paid. "Obviously we cannot impose on our members what they charge... we compete in a free market but the guidelines are agreed upon and present a small decrease."

FOI director general Wilfred Kenely was of a similar opinion, saying that now at least things had become clearer. The FOI, in fact, has issued a notice to all members telling them about the agreed rates.

"We are informed that there may be some spikes here and there by individual shipping agents or hauliers. By means of this notice we are basically telling our members what they can expect to pay."

Still Mr Farrugia was adamant, insisting tariffs had not gone down.

What all parties agreed upon, however, was that there were still costly inefficiencies at the ports which had to be tackled to result in real cost reductions.

"We are still paying for work which is not done at the ports," a shipping agent said.

"This is the first step, but we want the 25 per cent reduction that the minister (responsible for the ports) promised. Nothing less," Mr Kenely said. "We understand that such a reform takes its time; we're ready to be patient but we won't wait for years."