Cape Town: The City of Cape Town has renewed its call for Transnet to accelerate efforts to improve efficiencies at the Port of Cape Town after it was ranked last in the latest World Bank Container Port Performance Index (CPPI).
Member of the Mayoral Committee for Economic Growth and Tourism, Alderman James Vos stated that South Africa cannot afford a port that underperforms. They are to set to begin with all options for structural improvement that includes increased private sector involvement in operations, which deserve serious consideration and enablement.
Transnet Efforts Yet to Reflect in Global Rankings
Vos acknowledged that Transnet has always been supportive to the City and has made various investments to improve port operations. Despite so many efforts, they are still not seeing any of this improvement reflected in the latest global port rankings.
He said that it is a matter of concern for everyone who cares about economic growth, exports, investment and job creation in South Africa. There are many encouraging signs that reforms and partnerships are beginning to yield improvements elsewhere in the port network of the country.
Cape Town continues to struggle with operational inefficiencies that undermine the competitiveness and frustrate exporters who are trying to get their products to international markets. City of Cape Town encourages the measures taken by port authorities to improve efficiencies. It mainly includes – requests for Proposals to operate the Liquid Bulk Terminal and a cold storage terminal. The greater private sector involvement at the port is not going to get enough soon.as the city will continue to provide its full support to port authorities in reforming port inefficiencies.
Cape Town Port Employs Over 20K
Alderman James Vos further highlighted that in their engagements with businesses, exporters and investors, one issue that consistently rises to the top of agenda is: the performance of the Port of Cape Town. This includes agricultural producers who are trying to get fresh produce to overseas markets. The manufacturers always move goods through supply chains, or logistics operators with a certain plan. As port remains one of the biggest limitations on economic growth in the Western Cape.
According to the Western Cape Government’s Research Commission, a more efficient Port of Cape Town could unlock approximately R6 billion in additional exports and support over 20,000 jobs. It was also found that the port has generated over 1.6 billion in additional tax revenue and added meaningful growth to the provincial economy.
Most Popular Port in Africa
Cape Town is one of the most efficient ports on the African continent. It is strategically located on one of the world’s busiest shipping routes. The city is home to a diverse and growing economy of world class industries and a globally recognised tourism destination.
Also, the port is a competitive advantage that strengthens their position as a leading hub for trade and investment. Instead, it too often acts as a bottleneck that constrains growth and limits opportunity.
Strengthening Global Competitiveness
Considering the global platform, City’s position is unambiguous. Vos stated that the port must work better and the City will make every legitimate avenue available for partnership, advocacy, stakeholder engagement and reform to make their dream happen.
The port supports in opening the door far wider for private sector to participate in port operations. They supported reforms that bring investment, expertise and innovation into the system. They voluntarily support measures that improve efficiency, reduce delays and strengthen South Africa’s competitiveness in global markets.
They support interventions that help in unlocking economic growth and create more jobs for the people of Cape Town and South Africa.
Alderman James Vos said that it is the time for government and stakeholders to stop discussing reform and start implementing it. As everyday it delays meaningful reforms, exporters face unnecessary barriers, investment opportunities remain at risk and economic growth suffers. He mentioned that Cape Town, the Western Cape and South Africa can no longer afford to postpone these critical reforms.