Cape Town calls on Transnet to accelerate Port improvement strategies

The City of Cape Town has renewed calls for Transnet to accelerate initiatives to improve efficiencies at the Port of Cape Town, which has been ranked last in the latest World Bank Container Port Performance Index (CPPI). Alderman James Vos, Mayoral Committee for Economic Growth, says South Africa cannot afford a port that underperforms, and all options for structural improvement, including increased private sector involvement in operations, deserve serious consideration and enablement. Read more below:

‘While Transnet has made investments to improve port operations, we are still not seeing this improvement reflected in the latest global port rankings. This should concern everyone who cares about economic growth, exports, investment and job creation in South Africa. While there are encouraging signs that reforms and partnerships are beginning to yield improvements elsewhere in the country’s port network, Cape Town continues to struggle with operational inefficiencies that undermine our competitiveness and frustrate exporters who are trying to get their products to international markets.

‘The City notes the encouraging steps taken by port authorities to improve efficiencies, including Requests for Proposals to operate the Liquid Bulk Terminal and a cold storage terminal, as greater private sector involvement at the port cannot come soon enough. The City will continue to provide its full support to port authorities in reforming port inefficiencies.

‘In our engagements with businesses, exporters, and investors, one issue consistently rises to the top of the agenda: the performance of the Port of Cape Town. Whether it is agricultural producers trying to get fresh produce to overseas markets, manufacturers moving goods through supply chains, or logistics operators attempting to plan with certainty, the message is remarkably consistent. The port remains one of the biggest constraints on economic growth in the Western Cape,’ said Alderman Vos.

Research commissioned by the Western Cape Government found that a more efficient Port of Cape Town could unlock approximately R6 billion in additional exports, support nearly 20 000 jobs, generate more than R1.6 billion in additional tax revenue and add meaningful growth to the provincial economy.

‘Cape Town should have one of the most efficient ports on the African continent. We are strategically located on one of the world’s busiest shipping routes. We are home to a diverse and growing economy, world-class industries and a globally recognised tourism destination. Our port should be a competitive advantage that strengthens our position as a leading hub for trade and investment. Instead, it too often acts as a bottleneck that constrains growth and limits opportunity.

‘The City’s position is unambiguous: the port must work better, and the City will use every legitimate avenue available – partnership, advocacy, stakeholder engagement, and reform – to make that happen. We support opening the door far wider to private sector participation in port operations. We support reforms that bring investment, expertise and innovation into the system. We support measures that improve efficiency, reduce delays and strengthen South Africa’s competitiveness in global markets. Most importantly, we support interventions that help unlock economic growth and create more jobs for the people of Cape Town and South Africa.

‘The time has come to stop talking about reform and start delivering it. Every day that meaningful reform is delayed is another day in which exporters face unnecessary obstacles, investment opportunities are placed at risk, and economic growth is constrained. Cape Town, the Western Cape and South Africa simply cannot afford to wait any longer,’ said Alderman Vos.