Transnet’s announcement of a private sector partner to upgrade Pier 2 of the Durban Container Terminal has been praised by MEC Mireille Wenger. This investment is expected to benefit South Africa’s economy, and further investments are required in other ports, such as the Port of Cape Town (PoCT).
The State of the PoCT
The PoCT has experienced significant underinvestment by Transnet Port Terminals, resulting in operational inefficiencies. Transnet reported in a June presentation to the Western Cape Standing Committee on Finance and Economic Opportunities and Tourism that the Cape Town Container Terminal is significantly under-equipped, with only 16 Rubber Tyre Gantries available for cargo movement. This falls short of the optimal number of 39.
Moreover, the PoCT has faced performance issues since June 2023, including vessel waiting time at anchor averaging 4.6 days, compared to the target of one day, and vessel and truck turnaround times exceeding their respective targets. This highlights the urgent need for private sector participation in the PoCT, as it has been recently witnessed at the Port of Durban.
Economic Benefits of an Optimized PoCT
Research indicates that increasing Western Cape exports by 10% could lead to a 1% growth in GDP. However, this requires an efficient port infrastructure and essential equipment investments. An optimized PoCT has the potential to generate an additional R6 billion in exports, create around 20,000 direct and indirect jobs, generate over R1.6 billion in additional taxes by 2026, and contribute an extra 0.7% to the Western Cape Gross Domestic Product by 2026.
Private Sector Participation and Economic Growth
The Western Cape’s ‘Growth for Jobs’ economic strategy recognizes the private sector’s importance in job creation. It highlights the government’s responsibility to facilitate business operations and growth. Thus, a well-functioning port is crucial for the region’s economic success.
Private sector involvement in the PoCT can significantly boost efficiency and contribute to economic growth by creating thousands of jobs in the province and throughout South Africa. The recent partnership at the Port of Durban sets a precedent for similar collaborations in the future.
