Nico Walters, general manager of strategy at Transnet National Ports Authority (TNPA), told the audience: "As a state owned entity - and with all the other priorities that government faces - we have realised that we can no longer invest in everything. As a result we are inviting the private sector, including foreign investors, to invest in the initiatives planned for the Port of Saldanha. The R13 billion-amount is made up of three key projects, namely an offshore oil and gas supply base; dedicated rig repair berth; and an extension to the old Mossgas repair jetty."
In addressing the business leaders at the event, Tim Harris, CEO of Wesgro, welcomed the TNPA announcement as one that would strengthen the Cape's position as a key business destination in Africa.
Describing ports as levers of growth, Harris acknowledged the TNPA's collaborative approach with the private sector to help establish the region as a major transport and logistics hub. In speaking of the potential, he said: "Already, 54 out of 98 (almost 59%) of the international companies that have invested in Cape Town have done so to access the African market. Exports from the Western Cape totaled R74.87 billion in 2013, an increase of 16%, while Western Cape ports - including Cape Town, Saldanha and Mossel Bay - handle 20% to 30% (5,904 tonnes in February 2014) of the cargo in South Africa."
14 large companies based within the Cape metropolitan region have a collective annual revenue of $52 billion. Within Africa, this positions Cape Town second only to Johannesburg in terms of the number of large companies and associated revenues. Harris said: "The Cape is an attractive business destination for many reasons, including that it has the fifth lowest logistics - and the lowest oil and gas - operating costs compared to its peers. Airports Company of South Africa (ACSA's) plans for an aerotropolis will unlock further growth as we work to connect the ports and optimise these state assets for the economic benefit of the people of Cape Town."
Fellow speaker, Tebogo Mekgoe, chief operating officer of Airports Company of South Africa (ACSA), discussed the organisation's plans to transform Cape Town International Airport into an aerotropolis (business hub) that could ultimately extend to a 20 kilometer radius beyond the airport. Mekgoe said: "ACSA's aerotropolis strategy is designed to offer businesses speedy connectivity to suppliers, customers and enterprise partners nationally and world-wide. It will deliver firm and regional efficiency by generating 'economies of speed', while supporting the regional population in a sustainable manner."
Rapid urbanisation is placing enormous pressure on cities, and addressing challenges related to sustainable growth will become central to economic prosperity.
Session facilitator and CEO of Accelerate Cape Town, Chris Whelan, concluded the discussion by saying: "The population of Cape Town will increase from 3.75 million to five million by 2030 and a robust, inclusive economy will be critical to support this growth. Establishing it demands, among others, the optimisation of the considerable state assets based in our region. Together with regional economic entities such as Wesgro, and the relevant regional and local government departments, the TNPA and ACSA are perfectly positioned to help unlock the region's transport and logistics potential. Business is encouraged by the progress and plans presented today, and we are keen to facilitate investment as we collaborate towards a more inclusive and stable regional economy."
