Cape Town’s authorities are seeking urgent discussions with national representatives to explore opportunities for private sector participation in the Port of Cape Town. This comes in the wake of the announcement of the partial privatisation of Durban’s port, which is set to be co-owned and operated by the Philippines-based International Container Terminal Services.
The partial privatisation of Durban’s port could pave the way for similar innovations in Cape Town. Research conducted by the Western Cape’s Department of Economic Development and Tourism suggests that private sector participation could lead to an estimated R6 billion increase in exports, the creation of around 20,000 direct and indirect jobs, and an additional R1.6 billion in taxes over five years.
Alderman James Vos, Cape Town’s Mayoral Committee Member Economic Growth, welcomes the opportunity for private sector involvement in the city’s port. He expressed his enthusiasm for the prospects of private sector participation and is urging for an immediate meeting with the Ministers of Public Enterprises and Trade and Industry.
Transnet’s presentation to the Western Cape standing committee on finance and economic opportunities and tourism revealed that the Port of Cape Town’s current performance is disappointing. The container terminal is severely underequipped, possessing only 16 rubber tyre gantries instead of the optimal 39. Various indicators show a decline in the port’s performance, including vessel waiting times, vessel turnaround times, and truck turnaround times.
Alderman Vos welcomes the Western Cape government’s report, which recommends the appointment of a private service provider to operate the terminal. He emphasises the importance of efficient goods movement through ports for a country reliant on trade and exports, like South Africa. He also stresses the necessity of convening the economic cluster of the state to discuss the implications of privatisation, the allocation of costs, private sector contributions, and operational control.
The pursuit of private sector participation in Cape Town’s port is crucial for unlocking its full potential. It is essential for the government to engage with businesses and collaborate in managing key infrastructure to ensure economic growth and job creation in the region. Companies will redirect their business to other ports if delays persist, making it crucial to address the problems in the port’s performance.
South Africa is eagerly anticipating the arrival of Elon Musk's Starlink project, which aims to…
British Airways is increasing its flight frequency to Cape Town, with an extra daily flight…
South African Paralympic athletes Mpumelelo Mhlongo, Collen Mahlalela, Christian Sadie, and Simone Kruger made history…
The GreenPitch Challenge in Cape Town is more than just a contest, it's a launchpad…
Good news for South African consumers as fuel prices have dropped unexpectedly due to the…
The Department for Communications and Digital Technologies is excitedly anticipating a comprehensive briefing to the…