Transnet has announced that it is finally seeking a private partner to operate the Port of Cape Town.

Transnet National Ports Authority (TNPA) this week invited interested parties to submit a Request for Proposal (RFP) for appointing a terminal operator. The bid window closes on 15 July.

The successful bidder will operate, maintain, refurbish, or construct, a bulk terminal for a 25-year period at the harbour.

In a statement TNPA says the move is to unlock ”business value to deliver fit-for-purpose port infrastructure.”

“The issuance of the RFP is aligned to TNPA’s mandate to facilitate the provision of port services and facilities with emphasis on port revenue diversification, job creation, infrastructure development and collaboration with the private sector to foster sustainable economic growth. The Liquid Bulk Precinct within the Port of Cape Town enables the efficient movement of liquefied cargo across South Africa and beyond, facilitating international trade and ensuring security of supply.”

– Ophelia Shabane, Acting Port Manager, Port of Cape Town

The City of Cape Town says the announcement is long overdue.

The MMC for Economic Growth James Vos says the port’s well-documented inefficiencies have long been a burden on many South Africans, from exporters struggling to reach offshore clients to ordinary citizens ultimately paying the surcharges on delayed imported products.

He says Transnet’s notice this week is monumental, signalling a significant shift towards boosting outputs at the Port of Cape Town.

“The potential for private sector participation in the port is immense, with the capability to contribute an additional R6 billion in exports, generate roughly 20,000 jobs, and yield over R1.6 billion in additional taxes over five years, as per research from the Western Cape’s Department of Economic Development and Tourism.”

Vos has however called on Transnet to thoroughly vet all bidders to ensure that contracts are awarded to reputable entities.

Interested parties must attend a compulsory briefing session at the Port of Cape Town next Tuesday, 30 April 2024.

The request for proposal documents is available on the Transnet E-Tender portal.