James Vos, Cape Town’s Mayco member for economic growth, says the South African economy is losing R98 million a day due to challenges at the country’s ports.
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‘Clothing retailers and manufacturers are unable to bring in products and raw materials to meet customer needs. Retailers have gone so far as to send containers to Walvis Bay, Namibia, and transport goods via truck to ensure they have the necessary inputs to do business,’ he adds.
The City has urged President Cyril Ramaphosa to announce plans for urgent reform to improve cargo handling efficiency at the Port of Cape Town.
‘The city and country’s economy is dependent on the port for the efficient importing and exporting of goods,’ says Vos.
‘South African consumers are further hurt because the prices of various foodstuffs, such as cooking oil and canned goods, electronics like smartphones and laptops, and medications, are negatively impacted by the delays in the port.’
‘These delays knock local retailers who inevitably pass on the increase in cost to their customers.’
As per Southern Africa’s Freight News, fruit exporters have especially been hard hit by Hortgro, the fruit industry’s representative body. Fruit exports via Cape Town were down by 62% during November and December 2023, compared to the same period in 2022.
‘I am once again urging the National Government to give a clear and decisive deadline as to when private sector partners can be brought in at our port,’ says Vos.
‘And importantly, they must detail what measures will be put in place to avoid misuse or maladministration.’
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It is expected that a private partner will be introduced at the Ngqura Container Terminal in the Eastern Cape in April, while a private partner has been appointed for Durban’s Pier 2.
However, Vos says the plan gives no insight as to when or if this will happen at Cape Town and other ports.
‘An improved port would lead to the creation of job opportunities, increase export volumes, and improve our standing in the global market.’
‘More specifically, if the necessary upgrades and maintenance are conducted, we can see an economic injection of R6bn and 20 000 new jobs.’
Vos further hopes that President Ramaphosa will consider further duty reductions for products used in clothing manufacturing.
‘The reduction in 2021 of the 22% duty on imported woven fabric was an important step forward to improve the cost competitiveness of the industry.’
The rebate has reportedly improved the cost competitiveness of 22 million locally made products by an average of R9.50 per garment, according to the City’s Cape Clothing and Textile Cluster.
‘If such duty reduction measures were to be responsibly expanded into yarn and knitted fabric, more locally made products could achieve globally competitive prices and we could turbocharge interest in sourcing from South African manufacturers.’
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City calls for deadline on private sector involvement in Port of Cape Town
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