Privatisation has redefined African port operations, with major hubs like Tema, in Ghana, Abidjan, in Côte d’Ivoire, Tanger Med, in Morocco, and Lomé, in Togo, transitioning from congested State-run systems into globally competitive trade engines shortly after privatisation.

This is according to a study by fruit industry supply chain solutions company Link Supply Chain Management that highlights the significant advantages achieved through port privatisation across Africa.

The study found that, across the continent, privatisation consistently led to crane productivity improvements, with most privatised ports operating at 25 to 40 gross crane moves an hour (GCH) compared with 14 GCH that the non-privatised Port of Cape Town averages.

Similarly, privatised ports saw dwell time reductions, higher throughput capacity, accommodating larger vessels and more cargo and enhanced regional integration, driving logistics growth across borders.

“Privatisation has also sparked broader benefits, such as job creation, improved trade competitiveness, and strategic management,” says Link Supply Chain Management logistics coordinator Danica Potgieter.

“The key drivers of these changes include successful global operators with key performance indicator-driven operations and performance incentives, infrastructure upgrades such as deeper berths and new terminals, investments in modern cranes, yard systems and rubber-tyred gantry cranes and digital cargo tracking and smart port systems,” she says.

Further, the study showed that African countries took an average of 30 to 50 years to privatise their ports after gaining political independence, but, once these ports opened their doors to private-sector partners, the transformation was rapid.

“Despite being one of Africa’s largest economies, South African ports rank among the worst in efficiency. Durban, Cape Town, Port Elizabeth and Ngqura face chronic equipment failures, long delays, and outdated infrastructure, which hinders international competitiveness,” says Link Supply Chain Management MD Chris Knoetze.

Meanwhile, Namibia’s Walvis Bay, which first considered privatisation in 2023 and officially began operating under private management earlier this year, is already expanding its capacity and transshipment flows.

Another example is Lomé, in Togo, which once was seen as a modest port but, after privatisation, rivals Durban in strategic importance, he highlights.

Additionally, terminal operator DP World’s investment of $165-million in an expansion project at the Port of Maputo will enable it to handle much bigger vessels, and will also improve its competitive position as an alternative to South African ports.

These examples highlight the potential benefits of privatisation in enhancing operational efficiency and attracting investment to build infrastructure that can accommodate bigger vessels, which is also a global trend in shipping.

By adopting terminal concessions, public-private partnerships or full privatisation, South Africa can reduce congestion and port delays, modernise its infrastructure, attract capital, improve trade flow and cost efficiency and reclaim its role as the gateway to Southern Africa, he says.

While the request in March for private sector participation in rail and port freight logistics is welcome, the focus should now be on speedy evaluation, implementation, and execution with excellence, he adds.

“The sooner South Africa privatises its ports, the earlier we can unlock greater efficiency, ease bottlenecks, and modernise our port infrastructure. All these aspects will benefit the South African economy and strengthen our global competitiveness,” Potgieter emphasises.