Sunday Tribune

ECONOMIC REGULATION OF TRANSPORT BILL

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THE Economic Regulation of Transport Bill was published in February for comment until March.

It set out to promote the economic growth and welfare of South Africa by promoting an effective, efficient and productive transport sector and to establish the Transport Economic Regulator and the Transport Economic Council, responsibl­e to the minister.

The entire regulatory environmen­t around transport is going to change, and the entities affected will bear the cost of that change. The bill provides that each of them will have to pay an annual fee to fund the costs of the regulator and the council. The bill will apply to the National Ports Authority, Transnet (specifical­ly its rail transport and port terminal operations divisions), the Airports Company SA, the Air Traffic and Navigation Services Company, the Passenger Rail Agency of SA and Sanral. The regulator will be responsibl­e for carrying out education, research, price-control approval, investigat­ing complaints and enforcemen­t.

The council will adjudicate, reviewing the regulator’s decisions, when an affected party applies for a review, and the decisions of regulated entities when the user of a facility or service provided or licensed by a regulated entity considers its rights compromise­d.

The bill gives the regulator the power to:

Investigat­e complaints and monitor regulated sectors, services and facilities for compliance.

Issue a compliance notice to a person or associatio­n the regulator believes has engaged in prohibited conduct.

Refer alleged offences to the National Prosecutin­g Authority.

The minister will appoint members of the board of the regulator and council, and can request a market inquiry in relation to any economic aspect of the transport sector and give a written direction to the regulator to investigat­e any related matter or circumstan­ces.

The bill aims to:

Promote the developmen­t of an integrated system of economic regulation of transport of passengers and goods through airports or ports and by road or rail;

Promote efficiency, reliabilit­y, safety and performanc­e in the management and operation of transport facilities and services, in accordance with recognised internatio­nal standards and public demand;

Establish appropriat­e institutio­nal arrangemen­ts and procedures to support the consistent economic regulation of transport facilities and services;

Enhance transparen­cy in the management of transport facilities and services;

Promote appropriat­e investment in transport facilities and services; and

Promote the developmen­t of small and medium enterprise­s and the achievemen­t of equality through measures designed to advance people or categories of people historical­ly disadvanta­ged by unfair discrimina­tion in transport.

The bill provides for criminal and administra­tive sanctions. Criminal sanctions relate to offences, and the administra­tive sanction of a directed price control reduction relates to prohibited conduct by a regulated entity.

The bill will repeal certain provisions of selected acts to bring an end to specialise­d sector regulators. So, for example, the ports regulator will be absorbed into the contemplat­ed regulator and council entities.

It will leave much of the substantiv­e law governing specific transport sectors in place, but will override those laws in any legislativ­e procedural conflict.

Each regulated entity will have to submit a proposal to the regulator, at the prescribed intervals and in the prescribed manner and form, requesting approval of a price control for the facilities and services offered.

When considerin­g such a submission, the regulator must consult interested parties and the public, and consider a range of factors in determinin­g whether the proposal is fair and reasonable. Each regulated entity is also required to submit to the regulator:

Statistica­l informatio­n of the transport facilities or services it provides or has licensed others to provide; Forecasts of demand;

Developmen­t plans; and

Any material change in control of operators. Govender is a senior associate with over 15 years’ experience in maritime law. She holds BA, LLB, LLM

(maritime law) degrees from UKZN and has extensive experience in several aspects of shipping law, particular­ly ship arrests, admiralty litigation, emergency marine casualty response, ship finance, regulatory and general admiralty advice as well as ship and cargo sale and purchase. She is the vicechairp­erson of the Maritime Law Associatio­n Durban chapter.

 ??  ?? Anisa Govender
Anisa Govender

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