The Port of Cape Town, which is responsible for handling 55% of SA’s agricultural exports, will not follow the route taken by its Durban counterpart in inviting the private sector to help turn around the performance of its container terminal, saying it has sufficient internal capacity to improve productivity and eradicate the backlogs.
The port, which was ranked the worst in the World Bank’s Container Port Performance Index, says it is implementing a turnaround strategy, the development of a liquefied petroleum gas terminal, refurbishment of dry docks, ship repair facilities and expansion of the port.
Rajesh Dana, Cape Town port manager for implementation of the turnaround plan, will ensure that the port takes up its “rightful position as a renewed container port”.
The implementation plan will require the support of the private sector, including the development of the liquid bulk precinct in the port for a period of 25 years. However, the involvement of private sector actors will be unlike the case with the container terminal in Ngqura, in the Eastern Cape, and Durban container port terminal 2, where Transnet seeks a private partner to operate and manage the ports, a move that is widely expected to improve port performance which has inefficiencies, ageing infrastructure and congestion.
The Durban port is ranked 398 out of 405 ports listed in the index, while Ngqura (Coega) is at 404, underlining the challenges facing Transnet in improving the performance of the ports.
“We’ve been reaching out to the World Bank to work with us. This is on the back of us having engaged with them through the release of the last rankings ... sadly we were unable to get details of the underlying data sets,” said Dana, explaining that Transnet is challenging the accuracy of the report.
So grim was the performance of the Cape Town port that it missed its recovery targets in May, threating citrus exports.
“Transnet’s Cape Town Container Terminal has failed to meet its own recovery targets and ship working hours. The terminal’s headline productivity measure, which assesses the average container moves on a vessel per hour, [is] at an average of 25 hours compared to the 30-hour target,” Western Cape premier Alan Winde and former MEC of finance & economic opportunities Mireille Wenger said in a joint statement at the time.
“There are significant concerns mounting about the ability of the Port of Cape Town to be able to efficiently process and ship the goods.”
Data from the Western Cape government, which is in favour of increased private sector participation, shows average performance indicators for the port in recent months:
• January: 22.5 actual ship working hours against a target of 26;
• February: 23.4 actual ship working hours against a target of 27;
• March: 24.5 actual ship working hours against a target of 28;
• April: 25 actual ship working hours against a target of 30.
“Our research shows that an efficient and properly equipped [port] has the potential to contribute an additional R6bn in exports, roughly 20,000 direct and indirect jobs, and over R1.6bn in additional taxes by 2026, if there is significant investment in key infrastructure. To achieve this goal, we need the private sector to be brought in to improve the efficiency of the port,” Wrenger said.
However, Transnet Port Terminals (TPT), which is responsible for cargo handling and terminal operations, sought to allay fears despite the setback at the start of the export season. TPT’s regional corporate affairs and stakeholder manager, Andiswa Mesatywa, said TPT was on track to ensure the 15% anticipated increase in citrus exports this year would be delivered.
“We acknowledge the fact that there has been calls for private sector [involvement] but we firmly believe that the comprehensive plan will bear the fruits and take the port to its rightful place,” Dana said.
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