LETTER: Cape Town port also needs private partner

I welcome the news that Transnet has confirmed a private sector partner to develop and upgrade Pier 2 of the Durban container terminal. I look forward to seeing the urgent operalisation of this agreement, so that the benefits of this partnership in boosting economic growth in SA can be realised soon.

This is exactly the kind of investment we need at the Port of Cape Town (PoCT), to ensure that it functions optimally to support the growth of exports, thereby boosting economic growth and job creation.

Historically there has been major capital underexpenditure by Transnet Port Terminals in the PoCT. According to a presentation by Transnet in June to the Western Cape standing committee on finance and economic opportunities and tourism, the Cape Town container terminal is severely underequipped, with only 16 rubber tyre gantries available, which are needed to move cargo on and off ships, when the optimal number should be 39.

Additionally, while weather has had some role to play, there has been a notable decline in the PoCT’s performance across several indicators.

Since the beginning of June 2023:

• Vessel waiting time at anchor averaged 4.6 days versus the target of one day.
• Vessel turnaround time averaged 8.7 days versus the target of four days.
• Truck turnaround time averaged 64.5 minutes versus the target of 35 minutes.

The variance between the actual performance and the targets is cause of great concern and is why private sector participation is urgently needed at the PoCT, as is now being done at the Port of Durban and Ngqura.

Our research shows that if we can increase Western Cape exports by 10%, our GDP will grow by 1%. However, to achieve this growth in exports we need the port to be our economic partner and for it to be running efficiently, with adequate investment in its infrastructure, including vital equipment.

Mireille Wenger
Provincial minister of finance and economic opportunities, Western Cape
Via email

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