Mireille Wenger, Provincial Minister of Finance and Economic Opportunities said; “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 South Africa 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 under-expenditure by Transnet Port Terminals in the PoCT. According to a presentation by Transnet in June this year to the Western Cape Standing Committee on Finance and Economic Opportunities and Tourism, the Cape Town Container Terminal is severely under equipped, 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 1 day;
- Vessel turnaround time averaged 8.7 days versus the target of 4 days; and
- 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 currently being affected 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.
Research has also shown that an efficient PoCT with sufficient capacity and, significant investment in key infrastructure, has the potential to contribute:
- an additional R6bn in exports,
- roughly 20 000 direct and indirect jobs,
- over R1.6 billion in additional taxes by 2026,
- and an additional 0.7% contribution to the Western Cape Gross Domestic Product, by 2026.
At the heart of our new and ambitious economic Strategy, ‘Growth for Jobs’, is the understanding that it is the private sector that creates jobs, and that it is our role as government to make it is easy as possible for businesses to operate and to grow.
Put simply, if the port works, our economy works, and it is high time that the private sector is brought in to boost the efficiency of the PoCT so we can work together to achieve the kind of breakout economic growth we need to create thousands of new jobs in the province, and in South Africa.
Speedwell
Fun South African Fact: South Africa has continuously paid tribute to Dr Christiaan Barnard’s groundbreaking medical achievements.
Lervedr
Fun South African Fact: The Karoo region in the Western Cape is home to some of the best fossils of early dinosaurs. In fact, it is estimated that some 80% of the mammalian fossils found to date were found in the Karoo.