The City of Cape Town welcomes State-owned Transnet's call for private sector partners to upgrade and operate the multipurpose terminal at the Port of Cape Town.

Transnet’s request for proposals is for private sector partners to redevelop and operate Cape Town’s multipurpose port terminal under a 25-year concession.

This follows further recent calls for private sector proposals to operate the liquid bulk terminal and cold storage terminal.

The city has been advocating for Transnet to accelerate plans to improve efficiency at the port. “This is exactly the major reform the City has long been calling for,” says Cape Town Mayor Geordin Hill-Lewis.

“A more efficient port means more job-creating economic growth for Cape Town. We are optimistic about an economic boost for our region due to greater private sector involvement at the port, as well as Transnet’s R3.4-billion in capital investments to improve operations.

“The city will continue to provide its full support to Transnet’s efforts to expand and improve port operations,” Hill-Lewis says.

Research commissioned by the Western Cape government found that a more efficient Port of Cape Town could unlock about R6-billion in additional exports, support nearly 20 000 jobs, generate more than R1.6-billion in additional tax revenue and add meaningful growth to the provincial economy.

Port efficiency remains a top concern for business in the region, says City of Cape Town Economic Growth MMC Alderman James Vos.

“In our engagements with businesses, exporters, and investors, one issue consistently rises to the top of the agenda, namely the performance of the Port of Cape Town.

“Whether it is agricultural producers trying to get fresh produce to overseas markets, manufacturers moving goods through supply chains, or logistics operators attempting to plan with certainty, their message is remarkably consistent: the port remains one of the biggest constraints on economic growth in the Western Cape,” he says.

Cape Town should have one of the most efficient ports on the African continent. It is strategically located on one of the world’s busiest shipping routes, he says.

“We believe that, with continued reforms, Cape Town’s port can be a competitive advantage that strengthens our position as a leading hub for trade and investment, rather than a bottleneck that constrains growth,” Vos says.