Port of Cape Town agricultural exports heading for a crisis, warns Western Cape govt
The Western Cape is heading for an export crisis at the end of the year, warns Western Cape Finance and Economic Opportunities Minister Mireille Wenger.
“With the good rains we have experienced, our agricultural goods for export are anticipated to increase by 25%.
“This is a wonderful opportunity…to bring in more revenue.”
In direct contrast to this opportunity, however, there has been a “significant deterioration” at the Port of Cape Town, particularly when it comes to critical equipment, such as rubber-tyred gantries, warns Wenger.
“These are needed to load containers on and off trucks, but they are repeatedly breaking down.
“This means that, as it stands, the port is not, and will not, be able to keep up with the volume of goods coming in, and to get them to market in time.”
From October 2 to 15, vessel waiting time at anchor at the Cape Town port averaged 4.9 days, versus the target of one day, notes the Western Cape government.
Also, vessel turnaround time averaged 10 days, versus the target of four days; containers moved averaged 9 197 twenty-foot equivalent unit (TEUs) containers, versus a target of 20 000; and truck turnaround time averaged 77 minutes, versus the target of 35 minutes.
“The variance between actual performance and targets is cause for great concern and is why private sector participation is urgently needed at the Cape Town port, as is currently under way at the ports of Durban and Ngqura,” says Wenger.
“The Western Cape government’s research shows that if we can increase provincial Cape exports by 10%, our gross domestic product will grow by approximately 1%.”
“However, to achieve this growth in exports, we need the port to be our economic partner and for it to be running efficiently, with adequate investment in its infrastructure, including vital equipment,” notes Wenger. “Which is why the private sector should be brought in to run the terminal and increase the efficiency at the port.”
At the heart of the Western Cape government’s economic action plan, ‘Growth for Jobs’ is the goal to triple Western Cape exports by 2035.
“When our ports work, the whole of South Africa’s economy works,” says Wenger.
“South Africa cannot wait any longer. It is high time that the private sector is brought in to boost the efficiency of the Port of Cape Town so we can work together to achieve the kind of breakout economic growth we need to create thousands of new jobs in the province, and in South Africa.”
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