City reiterates call to allow private sector contribution to Cape Town port

The City of Cape Town has called on national government to immediately publish the Freight Logistics Roadmap and to encourage private sector involvement in the Port of Cape Town.

Economic Opportunities MMC Alderman James Vos says private sector involvement in running the port “cannot come soon enough given the economic drain of inefficient State-owned utility Transnet operations.”

“I have already written to Public Enterprise Minister Pravin Gordhan about the City’s proposals to move towards privatising elements of the Port of Cape Town. Following [Finance] Minister Enoch Godongwana’s announcement that private sector involvement will be guided by the Freight Logistics Roadmap, I will engage the Presidency on urgently releasing this report in full.

“Our country is heavily reliant on trade and exports. It is essential that goods are moved through the ports as efficiently as possible. Cape Town, at the southern tip of Africa cannot afford to have delays in our harbour because companies will go to other ports if they experience too many issues. At the same time, it is worth noting the efforts of the Port of Cape Town team to get the job done, despite the challenges they face,” says Vos.

Allowing private sector participation in the Port of Cape Town has the potential to contribute an additional R6-billion in exports, roughly 20 000 direct and indirect jobs, and over R1.6-billion in additional taxes over five years.

This is according to research presented by the Western Cape’s Department of Economic Development and Tourism.

“While we welcome the shift in national government’s position on privatisation, it is critical that the Freight Logistics Roadmap is available for scrutiny, especially given the Finance Minister’s indication that potential State bailouts for Transnet will be linked to compliance with this document.

“Wasteful State bailouts to preserve the status quo must be avoided at all costs in pursuit of urgent private intervention in the Port of Cape Town for maximum economic benefit,” concludes Vos.