Port of Cape Town turnaround strategy on track to deliver 240 000 jobs by 2026

7 June 2023

Yesterday, the Western Cape Standing Committee on Finance, Economic Opportunities and Tourism received an update on ongoing efforts by Transnet and the Western Cape Department of Economic Development and Tourism (DEDAT) to improve the efficiency of the Port of Cape Town.

The DA in the Western Cape was pleased to note that the partnership between the two entities is on track to achieve DEDAT’s high-growth scenario target of 240 000 jobs derived from operations at the port by 2026.

Collaboration between Transnet and DEDAT began in December 2019, as the post-drought recovery of agricultural exports exposed multiple shortcomings in the Port of Cape Town’s operations. Intense congestion at the port resulted in major delays, while agricultural producers sought to export their goods at a volume not seen for several years.

These delays were caused by an inefficient and outdated management system that failed to consider seasonal changes in weather and demand and the needs of cargo owners.

Since that time multiple interventions have been put into place by the DEDAT-Transnet partnership, and the Port of Cape Town is on track to reclaim its place as a world-class hub for shipping and international trade. This resulted from DEDAT’s exhaustive research into the causes of congestion at the port, as well as demand and supply dynamics on a seasonal basis.

Transnet and DEDAT have been able to make improvements which will maximise efficiency and operations at the port. Some of these include:

The launching of the Cape Town Container Logistics Dashboard, which allows for more efficient allocation of berths and other resources;

The introduction of hydraulic tensioners on two bays within the port to keep ships stable while moored, increasing the efficiency of loading and unloading operations;

The addition of a 9th ship-to-shore crane and a 3rd mobile harbour crane; and

Better staging areas for trucks at the port, and massive infrastructure investment into rail corridors for freight to the Port of Cape Town.

MPP Cayla Murray, DA Western Cape Spokesperson on Economic Opportunities, says: “With container terminals contributing more than R72 billion to the Western Cape economy in 2021, these improvements will have a direct and measurable impact on the provincial economy in the coming years. Containerised cargo volumes are predicted to grow 26% by 2026, and the Transnet-DEDAT partnership is on track to deliver an additional 15 000 jobs within the sector within three years, resulting in a total of 240 000 jobs from the shipping industry within the Western Cape.”

“It is fantastic to see the Port of Cape Town reclaiming its status as an efficient and vital driver of job creation and economic growth through the partnership of DEDAT and Transnet. The port’s progress over the last three years will go a long way to inspiring investor confidence in our province, and represents what can be achieved when data-driven solutions are implemented for the benefit of our economy. Every member of the committee was impressed by the Transnet and DEDAT’s briefings, and we look forward to tracking their progress in the coming months.”

Issued by Cayla Murray, DA Western Cape Spokesperson on Finance, Economic Opportunities, and Tourism, 7 June 2023