Cape Town: Mayor Geordin Hill-Lewis observed the inclusion in government’s Request For Information (RFI) process for Port of Cape Town to test the private sector appetite for partnerships between ports and freight rail lines.
Lewis expressed that they are relieved to see the inclusion in Port of Cape Town government’s testing of market appetite for private sector involvement. As the City of Cape Town has been making efforts to take this case to national government for some time.
“And I am grateful to Minister Barbara Creecy for following through on her commitment,” said Mayor Lewis. However, this is a positive step towards enabling and enhancing the level of infrastructure investment and expertise needed to co-run the port successfully.
According to a statement released by the World Bank, Cape Town Port is the least efficient one in the world and is a real hand-brake on the regional economy and job creation.
There is a need that they urgently see private investment and management in the Cape Town port to release this hand-brake and speed-up job creation in Cape Town.
Mayor Hill-Lewis further stated that there is a great potential for job-creating economic growth, if they can establish the port as a regional shipment hub of choice and turn its reputation around, as one of the worst in the world for inefficiency.
The short deadline of the government i.e. August 2025 is coming near and the team is being encouraged to enter into the formal procurement phase for private partners and the Development Bank of Southern Africa’s involvement in setting up the coordinating unit, to get private partnerships done. Lewis cleared that they must make sure that these timelines are not delayed.
A notable research from the Western Cape Department of Economic Development and Tourism was done which indicates that the private sector participation at the Port of Cape Town could result in an additional R6 billion in exports. It will also include, the creation of approx. 20,000 jobs and over R1.6 billion in additional tax revenues within five years.
Considering this, Member of the Mayoral Committee for Economic Growth and Tourism – Alderman James Vos said that the major infrastructure investment is needed to reduce the impact of wind on port operations. This has been a key concern that is expressed by business leaders during the industry engagements of the City of Cape Town.
Vos mentioned that when the port is unable to operate sufficiently, the exporters are forced to divert their goods to other ports in Durban, Gqeberha and elsewhere at huge costs. The private sector has the services and the expertise and have shown that they are willing to assist as much as possible.
“We will be closely monitoring the RFI process which they hope will lead to the full-scale joint running of the Port with private partners, as well as a major infrastructure investment boost,” stated James Vos.
Furthermore, the City of Cape Town stands ready as a partner to expedite any infrastructure investment within the local government purview.