Port of Cape Town: City calls for deadline on private sector involvement

10 January 2024  

‘Amid ongoing reports of extreme inefficiencies at the Port of Cape Town, the City calls for a clear deadline on introducing a private sector partner here, as will be the case at the Durban port from April.

‘The urgency of reform is underscored by a major shipping company recently announcing plans to bypass Cape Town’s port in certain respects.

‘We are still awaiting the publication of the Freight Logistics Roadmap, which is being kept under wraps by national government despite our repeated requests for transparency from Public Enterprises Minister Pravin Gordhan.

‘The City will continue to actively mobilise stakeholders, including the private sector, to pressure government into clear timeframes and deadlines for a private partner for the Port of Cape Town.

‘Additionally, the World Bank’s recent low global ranking of the Cape Town port underscores a pressing concern for our trade capability. This should be a stark wake-up call for national government to take urgent and decisive action to ensure a thriving trade environment for our city,’ said Alderman Vos.

According to the World Bank’s container port performance index 2022, Cape Town ranked 344 out of the 348 ports surveyed.

Allowing private sector participation in the Port of Cape Town has the potential to contribute an additional R6 billion in exports, roughly 20 000 direct and indirect jobs, and over R1,6bn in additional taxes over five years. This is according to research presented by the Western Cape’s Department of Economic Development and Tourism.

‘While we welcome the proactive steps taken by Port of Cape Town manager Rajesh Dana to address the persistent technical challenges hampering port deliveries, we will only properly solve these inefficiencies when the private sector has a direct stake in managing port operations.

‘This monumental task necessitates collaboration and interdependence, tapping into the expertise, knowledge, strategies, and innovation of various stakeholders.

‘Logistical obstacles at the port cast a ripple effect on the city's overall economy, and require urgency from the state. As a City, we are dedicated to working closely with national government and private players to foster successful collaboration. By leveraging each other's strengths and resources, we can chart a sustainable course for growth and development in our city,’ said Alderman Vos.

Issued by Media Office, City of Cape Town, 10 January 2024