Agri Western Cape and the Cape Chamber of Commerce (CCCI) are concerned with the state of the Port of Cape Town, which is experiencing operational challenges.
Jacques Moolman, president of the CCCI, said the port’s congestion crisis and consequent negative impact on the regional economy are substantial and well documented.
He said the most recent study estimates that by 2026, the annual loss to the fiscus in terms of lost export opportunities would be around R2 billion at a cost of more than 19 000 jobs, and what is less commonly known is the huge behind-the-scenes effort to resolve the crisis involving multiple stakeholders.
“The Chamber is working hard to help set up a special purpose vehicle (SPV), which we believe is the best way to address the current crisis.
This SPV should include key stakeholders involved with logistics who would work towards addressing specific problems, such as the current port infrastructure shortcomings, as well as the broader problem of a deteriorating logistics system that includes Transnet Freight and our road network.”
Moolman said the port’s capacity is falling short of the demand for exports, reducing not only economic growth for the private sector and employees, but also tax revenues.
“Cargo keeps growing, but cargo capacity keeps falling, reaching levels that have now prompted major shipping lines to impose a cargo surcharge on containers entering South Africa.”
Jannie Strydom, chief executive officer of Agri Western Cape, said key operational challenges include equipment malfunctions, labour disputes and infrastructure issues, all of which have contributed to disruptions in the port’s operations, leading to delays and potential consequences for both local and international trade.
“The Port of Cape Town plays a crucial role in facilitating the movement of goods, supporting economic activities and fostering international commerce.
Unfortunately, the current operational issues are causing delays in shipping schedules and hindering the overall productivity of the port.
“The consequences of a non-functioning port are far-reaching and will have a devastating impact on the agricultural sector,” said Strydom.
Andiswa Dlanga, Transnet Port Terminals managing executive, Western Cape Region, said the Cape Town Container Terminal (CTCT) operates three berths, which allows the CTCT to have three vessels loading or unloading simultaneously.
“On average, vessels spend between three and five days in the port, alongside the quay, based on parcel size and moves, before departure. This is an industry norm.
“In October, the Transnet National Ports Authority (TNPA) communicated to its stakeholders that after the soundings that were conducted on CTCT berths, it was prudent that they embark on a dredging process that is aimed at ensuring that they accommodate all vessels according to size and drafts.
“This had to be done ahead of the deciduous fruit peak season. During the dredging period, the terminal had one or more vessels that had to wait at anchorage. As such, the operations experienced an increased average dwell time at anchorage and vessel turn-around time,” said Dlanga.
She said: “We can confirm that CTCT handles a weekly budgeted volume of 14 450 twenty-foot equivalent units (TEUs) moves and has been averaging 12 158. These numbers are aligned to their current contracted volumes with customers,” she said.