According to the World Bank’s 2023 Container Port Performance Index, Cape Town is the world’s worst-performing port. Economic growth mayco member James Vos stated that this required immediate action because it would continue to impede both economic growth and the City’s status.
Also read: Transnet considers private liquid bulk operator for Port of Cape Town
He stated that the City of Cape Town had advocated for the incorporation of private sector investment and participation in port operations and logistics.
‘Transnet must keep the privatisation ball rolling on its April announcement to seek bids for the development and maintenance of a liquid bulk terminal,’ Vos said.
‘The inefficiencies at our port not only impede the flow of goods, but also significantly hamper our economic growth. The port is a crucial nexus for the products and services of the private sector, and its performance directly impacts our economy.’
Vos added that the City’s Economic Growth Directorate, in collaboration with its business partners in various sectors, was working hard behind the scenes to improve productivity and market access.
‘Despite these efforts, we face significant challenges as goods struggle to get through the port,’ he said.
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‘We are constantly working on ways to increase demand and supply that benefit our economy, only to see these efforts hindered by the port’s inefficiencies.’
The incorporation of private sector expertise and resources was required and would guide the process in the right direction. ‘Private sector involvement can bring fresh perspectives, innovative solutions and more efficient operational practices,’ Vos said.
According to research conducted by the Western Cape Department of Economic Development and Tourism, private sector participation at Cape Town’s Port could result in an additional R6 billion in export revenue. Within five years, approximately 20 000 jobs had been created, along with over R1.6 billion in additional tax revenue.
‘The types of products affected by the port’s performance are diverse and critical to our economy, such as agricultural goods, manufactured products and high-value exports like wine and seafood.
‘The efficient movement of these goods is essential for maintaining Cape Town’s competitive edge in global markets,’ he said.
Vos added that the harbour was critical to the economic growth mission and requested an urgent meeting with the national government and key stakeholders.
Vos hoped to speed up the process of increasing private sector participation in the port’s operations.
‘Our city cannot afford delays. We need action now to ensure a prosperous future for Cape Town and its people,’ he said.
Speaking to the Weekend Argus, Andiswa Mesatywa, Communications for Transnet Port Terminals Cape Town said they would reserve their comment at this stage.
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City calls for deadline on private sector involvement in Port of Cape Town
Picture: Misha Jordaan / Gallo Images