South Africa’s transport industry could undergo a radical transformation with the establishment of a new independent Transport Economic Regulator (TER) to regulate the pricing of access to airports, seaports, highways and rail.
According to the Department of Transportation, a new regulator would level the playing field, especially for seaports and rail.
The mandate of the TER is to balance the requirement for state transport entities to recover their costs while ensuring that services provided are priced reasonably for businesses and consumers.
The Economic Regulation of Transport (ERT) Bill, which would establish the new regulator once passed, would speed up the formation of TER. The Bill will also allow the TER to take over the functions of various government organisations.
In the Department of Transportation’s Roadmap for the Freight Logistics System in South Africa published in December 2023, airport economic regulations, currently entrusted to the Minister of Transport as per the Airports Company Act, would be enforced at arms-length by an independent regulator in collaboration with the government aviation regulatory bodies rolled into the TER.
A statement received by Travel News from the Board of Airline Representatives of South Africa (Barsa) says that George Mothema, CEO of Barsa, acknowledges the government’s efforts to establish a more coherent regulatory landscape. However, he emphasises that the Bill must align with the recommended policies and practices of ICAO for South Africa to maintain international competitiveness. Mothema also underscored the importance of considering perspectives from all stakeholders throughout this process.
“Barsa advocates for an inclusive approach that addresses the diverse needs of the aviation sector, ensuring equitable and transparent practices.”
