New tariffs Valletta Gateway Terminals planned to introduce today have been suspended pending talks with the authorities, the government announced last night.
In a brief statement, the government said the proposed terminal operator charges were suspended following a meeting between Transport and Infrastructure Minister Joe Mizzi, Transport Malta chairman James Piscopo and Valletta Gateway Terminals management.
It said the private firm operating the cargo handling facilities at Grand Harbour was empowered to raise charges every three years in line with a 2010 agreement.
It was agreed, the government added, that the new tariff structure regime would be put on hold pending the outcome of the talks aimed at reaching a final agreement so that expenses would not rise.
Times of Malta had earlier been informed that the company was planning to go ahead with its plans for higher charges although a company spokesman did acknowledge that talks were in progress.
Asked whether the transport watchdog had initially given the green light to the new tariff system and then had a change of heart, the spokesman declined to comment.
This newspaper was told by sources close to the industry that Transport Malta had cleared the new rates but then adopted a different attitude after a report appeared on Times of Malta last Tuesday.
When contacted about this, a spokesman for the regulator did not deny that Transport Malta had changed its stand. He also confirmed that talks were are still ongoing adding: “The authority’s position on the issue remains unchanged.”
Valletta Gateway Terminals announced its new tariff structure, providing for a 2.6 per cent increase in the handling charges of a 40-foot container, on August 14 through a memorandum sent to clients and copied to Transport Malta chairman James Piscopo.
The authority’s position remains unchanged
When Times of Malta reported on the higher rates, Transport Malta said it was objecting to the unilateral decision by the private operator to raise cargo handling charges. The decision to raise tariffs clashed with the government’s policy of trying to make Malta more competitive.
Only a few weeks ago, Prime Minister Joseph Muscat said port rates should go down because Malta was losing its competitiveness.
The bulk of domestic cargo nowadays passes through the Freeport terminal in Kalafrana. However, the Valletta port still handles a substantial part of domestic trade.
Some weeks ago, the regulator intervened to stop the introduction of new tariffs at the Freeport in Kalafrana. According to the regulator, the proposed raise was not in the interest of competition.
Both the Chamber of Small and Medium Enterprises – GRTU and the Chamber of Commerce, Enterprise and Industry strongly oppose any increase in port charges.