The Port of Cape Town has been identified as the world’s worst-performing and least competitive port according to the World Bank and S&P Global Container Port Performance Index for 2023.
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Cape Town’s port is joined by the Port of Ngqura in the Eastern Cape which ranked second-last while the Port of Durban, the country’s largest port and handler of nearly half of South Africa’s port traffic, ranked 399th on the list.
The Port Performance Index assesses and compares the performance based on vessel time spent in 405 main ports worldwide.
According to the latest index, Yangshan Port in China took the top spot as the world’s top-ranked container port followed by the Port of Salalah in Oman in second place. Both ports retained their ranking from the 2022 index.
Regarding the continent, it was found that Africa’s best port is Tangier Mediterranean in Morocco, which ranked fourth on the global index, with the highest ranking ports in sub-Saharan Africa being the Port of Berbera and Port of Mogadishu in Somalia, securing ranking 103 and 176.
The Port of Port Elizabeth took top spot in terms of South African ports, ranking 391 globally.
Commenting on the ranking, City of Cape Town’s MMC for Economic Growth Alderman James Vos said the ranking highlights the pressing need for substantial reforms and immediate action.
‘The City of Cape Town has consistently advocated for the inclusion of private sector investment and participation in port management and logistics. Transnet must keep the privatisation ball rolling on its April announcement to seek bids for the development and maintenance of a liquid bulk terminal,’ says Vos in a statement.
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‘The inefficiencies at our port not only impede the flow of goods but also significantly hamper our economic growth. The port is a crucial nexus for the products and services of the private sector and its performance directly impacts our economy.’
Vos added that despite efforts made by the City’s Economic Growth Directorate and its strategic business partners from various sectors, significant challenges remain as goods struggle to get through the port.
‘The integration of private sector expertise and resources is not just a potential solution – it is a necessary step,’ says Vos. ‘Private sector involvement can bring fresh perspectives, innovative solutions and more efficient operational practices.’
According to Vos, research from the Western Cape Department of Economic Development and Tourism indicates that ‘private sector participation at the Port of Cape Town could result in an additional R6 billion in exports, the creation of 20 000 direct and indirect jobs and over R1.6 billion in additional tax revenues within five years.’
Concluding his statement, Vos called for an urgent meeting with the national government and key stakeholders to expedite the expanded process of private sector participation in the port.
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Picture: Steve Doig / Unsplash