Cape Town Mayor Geordin Hill-Lewis has called on the national government to ensure the Port of Cape Town is included in its plans to assess private sector involvement in South Africa’s rail and port industries.
This follows reports that Transport Minister Barbara Creecy is set to issue a Request for Information (RFI) this month to gauge interest in public-private partnerships.
The mayor welcomed the government’s move, emphasising that private sector involvement is essential to improving the port’s operations.
“We are encouraged that national government will this month test private sector appetite for partnerships on ports and freight rail. This is long overdue, especially for the Port of Cape Town, which is ranked among the worst in the world.”
Port of Cape Town global ranking
The World Bank’s 2023 Container Port Performance Index ranked the Port of Cape Town as one of the worst globally. According to Mayoral Committee Member for Economic Growth, James Vos, the poor performance has significantly impacted exports, particularly in the agricultural sector.
In response to the release of the Container Port Performance Index in June last year, Vos highlighted that inefficiencies have led to a 20% drop in fruit exports, with Cape Town’s Container Terminal operating at roughly half the global standard for crane moves per hour.
“The integration of private sector expertise and resources is not just a potential solution – it is a necessary step. Private sector involvement can bring fresh perspectives, innovative solutions, and more efficient operational practices,” Vos said in June.
Vos added that research by provincial departments has shown that private-sector involvement could result in a major boost for the economy, particularly an additional R6 billion in exports, 20,000 new jobs, and R1.6 billion in tax revenue over five years.
Private partners for Port of Cape Town
Meanwhile, in response to news of the RFI, Vos said the impact of port inefficiencies has been highlighted by affected businesses. He urged the port’s management to prioritise upgrading equipment, in a bid to mitigate the impact of adverse weather on port operations.
“Whenever Cape Town experiences strong windy conditions, port operations grind to a near halt. Yet we have always been a city of great gusts and port authorities must do more to stay ahead of such conditions. When the port is unable to operate sufficiently, exporters are forced to divert their goods to other ports in Durban, Gqeberha and elsewhere at huge costs,” said Vos.
Hill-Lewis has said that the national government is not by the means to properly invest in the infrastructure at Cape Town’s port.
“While some new and replacement cranes are apparently on the way for Cape Town’s port, this is a drop in the ocean compared to the robust private sector investment and operational control needed to lift our port’s performance to compete with the best in the world.”
He said he would be keeping a close eye on developments related to the RFI.
“An efficient port will raise exports of locally produced products and drive job creation in these industries, especially in our vital agricultural sector. We need a clear and urgent deadline for greater private sector involvement in Cape Town’s port operations,” said Hill-Lewis.
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