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The DA in the Western Cape has invited Transnet to appear before the Standing Committee on Finance, Economic Opportunities and Tourism on the 9th of November and provide feedback on the persistent inefficiency of the Port of Cape Town, and the extent of potential private sector participation and investment in the Port. The meeting will be followed by an oversight visit to the Port.

In response to a Bloomberg article last week touting private sector involvement in Transnet, the presidency has confirmed that “business and social partners” will be involved in the future of freight logistics in South Africa, but that the entity will remain under state control. The DA Western Cape has for years been a staunch advocate for private investment and private sector involvement in the Port of Cape Town.

The Port ranks among the worst in the world according to the World Bank’s Container Port Performance Index 2022, ranking 344th out of 348 ports worldwide. Furthermore, according to Wesgro, an alarming amount of Transnet’s financing is funded by debt, more than 46% during the last financial year.

The current model is clearly not working, and that is why private sector involvement will be necessary for the Port to reach its potential as a jobs engine, for both the Western Cape and South Africa. With the dire state of National Government resources, private sector investment should be leveraged to create a world-class port, which would then enable more exports, and lead to more job creation across multiple sectors.

The Standing Committee meeting will serve as an opportunity to engage with Transnet on the subject of private sector involvement at the Port of Cape Town, as well as any possible blockages that the DA can help to clear to ensure the Port gets up to speed. The Standing Committee will also be engaging with the South African Association of Freight Forwarders, to identify private sector concerns relating to the Port.

When it comes to job-creation, the DA will leave no stone unturned, and stand ready to make every effort to support the drive towards private sector involvement and higher efficiency at the Port of Cape Town.

Issued by the Democratic Alliance