City engaging with Transnet to help solve delays at Cape Town Harbour
21 January 2022
STATEMENT BY THE MAYCO MEMBER FOR ECONOMIC GROWTH, ALDERMAN JAMES VOS
Recent media reports of backlogs at the Transnet-owned and managed Cape Town Harbour are deeply troubling.
Ports are key drivers of business and urban development particularly in cities such as Cape Town, which are geographically remote from other global and national cities, while also being a major entry point into South Africa and the continent.
I have engaged with Transnet leadership to express, on behalf of the City of Cape Town and businesses within the metro, the urgency of this matter. Not only will the delays place further pressure on economic re-growth in the province and country as the Western Cape’s export market is affected, but South Africans will likely end up paying for the higher logistical costs.
I also raised concerns about Transnet’s bid to hike tariffs by up to 24% in the next financial year. South African ports are already some of the most expensive in the world, should it be hiked further, we will be punishing our exporters – and the economy - even more, while increasing the appeal of less expensive competitors.
I am equally aware of the complexities involved in operating the port and have had numerous engagements over the past few months with the freight forwarding association, the Exporters’ club and industries whose businesses have been affected by the challenges at the Cape Town facility.
Because of these pressing challenges, ranging from excessively high winds and Covid absenteeism of highly trained staff, I will be meeting with other concerned role-players in the City government in the coming days to determine our various positions and plans in the hope that we can play a constructive role in helping the port address these issues.
Even though the City does not have the levers or powers to solve most of these problems, we are determined to play whatever role we can in finding innovative solutions with various partners. My officials and I are also engaging with my counterparts in the provincial government and in other key structures to discuss these recommendations and lobby efforts.
The announcement of the corporatisation of Transnet in 2021 was a welcome development that has been accompanied by a noticeable willingness to engage with local partners to improve operations, a move which we as a City welcome and will reciprocate.
As the local government in which the port is located, we remain committed to building this relationship further. In many other metros around the world, the City government has major ownership and operational stake in the port, given its importance to the local economy. As such, we would therefore be open to exploring with Transnet ways in which we can gain a meaningful stake in the facility that will help us drive the innovative change necessary to turn this strategic asset into the economic driver for the local economy that it can – and needs to - be.
End
Published by:
City of Cape Town, Media Office