The Port of Cape Town is the worst-performing port in the world, according to the World Bank Container Port Performance Index of 2023.
Economic growth Mayco member James Vos said this called for immediate action as it would continue to hamper both economic growth and the City’s status.
He said the City of Cape Town had advocated for the inclusion of private sector investment and participation in port management and logistics.
“Transnet must keep the privatisation ball rolling on its April announcement to seek bids for the development and maintenance of a liquid bulk terminal,” Vos said.
“The inefficiencies at our port not only impede the flow of goods, but also significantly hamper our economic growth. The port is a crucial nexus for the products and services of the private sector, and its performance directly impacts our economy.”
Vos added that the City’s Economic Growth Directorate, along with its business partners in various sectors, were working hard behind the scenes to improve their productivity and enhance access to markets.
“Despite these efforts, we face significant challenges as goods struggle to get through the port,” he said.
“We are constantly working on ways to increase demand and supply that benefit our economy, only to see these efforts hindered by the port’s inefficiencies.”
The integration of private sector expertise and resources was necessary and would head it in the right direction. “Private sector involvement can bring fresh perspectives, innovative solutions and more efficient operational practices,” Vos said.
According to research by the Western Cape Department of Economic Development and Tourism, private sector participation at the Port of Cape Town could result in an additional R6 billion in exports. There had been the creation of approximately 20 000 jobs and over R1.6bn in additional tax revenue within five years.
“The types of products affected by the port’s performance are diverse and critical to our economy, such as agricultural goods, manufactured products and high-value exports like wine and seafood.
“The efficient movement of these goods is essential for maintaining Cape Town’s competitive edge in global markets,” he said.
Vos added that the harbour was integral to the economic growth mission and called for an urgent meeting with the national government and key stakeholders.
Vos hoped to expedite the expanded process of private sector participation in the port’s operations.
“Our city cannot afford delays. We need action now to ensure a prosperous future for Cape Town and its people,” he said.
Andiswa Mesatywa, Communications for Transnet Port Terminals Cape Town said they would reserve their comment at this stage: “This is currently being reviewed by Transnet internally and at this point, we currently have no view and therefore unable to comment. Once a conclusion on this is reached, it will be communicated accordingly.”