Where are the private sector plans for Cape Town port?

Cape Town Mayor Geordin Hill-Lewis has called on Transport Minister Barbara Creecy to include the Port of Cape Town when considering private sector involvement in the upgrade of ports and freight rail lines in South Africa.

According to a report on Businesslive, Creecy indicated that a Request for Information (RFI) will be issued this month for potential third-party involvement in South Africa’s logistics sector.

“We are encouraged that national government will this month test private sector appetite for partnerships on ports and freight rail. This is long overdue, especially for the Port of Cape Town, which is ranked among the worst in the world,” Hill-Lewis says.

Moneyweb reported earlier that the Port of Cape Town ranked right at the bottom of the Container Port Performance Index (CPPI) released in June last year. The index is jointly compiled by the World Bank Group and S&P Global.

Cape Town Port has been beset with challenges, such as ailing infrastructure and underinvestment for years, but has so far not been considered for private sector investment to the same extent as other ports in South Africa.

ALSO READ: Cape Town port ranked the worst in the world

“There has been little clarity to date on government’s plans for the Port of Cape Town, despite recent announcements by Transnet that it will be seeking private sector investment for the ports in Durban, Richard’s Bay and Gqeberha,” says Hill-Lewis.

He urges Creecy to include Cape Town Port in her RFI process.

“The RFI needs to be designed to encourage private sector proposals to co-run Cape Town’s port and enable major infrastructure investment,” Hill-Lewis notes, adding that the government does not have the funding to properly invest in Cape Town’s port infrastructure.

“Replacement and new cranes are reportedly ‘on the way to Cape Town Port’ [but] this is a drop in the ocean compared to the robust private sector investment and operational control needed to lift our port’s performance to compete with the best in the world.”

ALSO READ: Transnet calls World Bank out on Cape Town being ‘worst port in the world’

Cape Doctor ‘an excuse’

Extreme winds at the Port of Cape Town, especially the southeaster during the summer months, frequently disrupt operations leading to shutdowns to avoid safety hazards like swinging containers and crane collapses.

These disruptions have a detrimental impact on fruit exporters.

However, stakeholders, notably fresh produce exporters, have complained that the wind in Cape Town has become a handy excuse for prevailing inefficiencies such as equipment failure, breakdowns and long lead times with maintenance and fixing equipment.

Mayoral committee member for economic growth James Vos notes that business leaders in the fresh produce supply industry experienced a 20% drop in exports of fruits such as grapes in the current period due to the port’s problems.

“With this port handling 80% of deciduous fruit exports each season (from December to April), it is absolutely vital – and urgent – for our economy that this port improves operational conditions.”

Research from the Western Cape Department of Economic Development and Tourism shows that private sector participation at the Port of Cape Town could create 20 000 new jobs and add R6 billion in exports.

This article was republished from Moneyweb. Read the original here.