Port Of Cape Town Private Partnership 'monumental' Shift

The City of Cape Town has welcomed as long overdue the announcement this week that Transnet is seeking a private partner for development at the port.

Mayoral committee member for economic growth James Vos said the notice signalled a shift to improve productivity at the port.

The ports well-documented inefficiencies have long been a burden on many South Africans, from exporters struggling to reach offshore clients to ordinary citizens ultimately paying the surcharges on delayed imported products, Vos said.

Transnets notice this week is monumental, signalling a significant shift towards boosting outputs at the Port of Cape Town.

This comes after Transnet National Ports Authority issued a call for interested parties to submit bids to acquire, operate, maintain, refurbish, or construct and transfer a liquid bulk terminal at the port for a 25-year concession period.

The potential for private sector participation in the port is immense, with the capability to contribute an additional R6 billion in exports, generate roughly 20 000 jobs, and yield over R1.6bn in additional taxes over five years, as per research from the Western Capes Department of Economic Development and Tourism, Vos said.

He added that the development underscored the city's longstanding advocacy for change.

I have written numerous times to the national government, calling for this shift in operations, and have been in constant dialogue with exporters and companies about the impacts, Vos said.

As we move forward, its crucial for Transnet to thoroughly vet all bidders to avoid past mistakes, ensuring that contracts are awarded to reputable entities. Let's learn from previous missteps, such as the reported issues with an organisation contracted to secure a coal line stretching from Limpopo to KwaZulu-Natal.

He said the development indicated the citys potential to drive real economic growth.