Improving coordination across the Western Cape's three commercial ports will be critical to growing exports, creating jobs and strengthening the province's competitiveness, according to the Western Cape Department of Economic Development and Tourism.
Source: Supplied | From left to right: Glen Steyn, Director for Maritime Logistics, Western Cape Department of Economic Development and Tourism, Ilse van Schalkwyk, Deputy Director-General, Western Cape Department of Economic Development and Tourism, and Terry Gale, Chairman Exporters Western Cape.
Speaking to Exporters Western Cape members in Cape Town on 5 August, deputy director-general Ilse van Schalkwyk outlined the province's recently launched export strategy and the first phase of its developing maritime logistics strategy, which aims to integrate the ports of Cape Town, Saldanha Bay and Mossel Bay into a more coordinated logistics system.
The Western Cape aims to grow its economy by between 4% and 6% by 2035, triple exports – including tourism – and bring 1,000 new exporters into the economy. Van Schalkwyk said the province also needed to diversify beyond its strong dependence on primary agricultural products by increasing manufactured and other value-added exports.
"Nobody needs to do us a favour. We need to be competitive," she said. "That last decision by a buyer often comes down to price, but competitiveness is what allows you to go toe-to-toe in global markets."
Integrated port network
Logistics capacity would have to keep pace with private-sector investment and rising production. Van Schalkwyk said Port of Cape Town cargo had the potential to grow by about 4% a year, representing roughly 40,000 additional containers and supporting around 5,000 new jobs annually. Failing to accommodate that growth would constrain job creation.
The province's maritime logistics strategy therefore looks beyond the Port of Cape Town to the Western Region's three commercial ports – Cape Town, Saldanha Bay and Mossel Bay. Each port would build on its strengths while forming part of a coordinated system.
Cape Town's role includes multi-cargo handling, a specialist cold port, cruise activity and ship repair; Saldanha Bay offers deep-water bulk capacity, energy-storage opportunities and potential for large-scale ship repair; while Mossel Bay has opportunities in liquid fuels and cruise tourism.
"You cannot focus only on the Port of Cape Town. You have to look at the system," Van Schalkwyk said.
She said this would require long-term infrastructure planning, investment and decisions about where particular functions should be located.
The strategy identifies four strategic enablers:
• Better integration and synchronisation across the logistics ecosystem, including cargo handovers between road and rail.
• Digital platform development, including a port community system and the use of predictive analytics to prevent bottlenecks.
• Balancing port performance and cargo flows.
• Strengthening resilience during disruptions.
Digital integration and private investment
Van Schalkwyk said digital integration remained a priority. While several standalone initiatives already existed, the province needed an independent port community system that brought information together for exporters, cold stores, depots, logistics operators, customs and port users.
She also welcomed Transnet's move to seek a partner to design, finance and operate Berths B-D at the Port of Cape Town under a 25-year concession.
"It is not simply about saying the private sector does it better. It is about bringing in partners that can deliver faster, at a lower cost and with improved capability," she said.
Van Schalkwyk added that the province was engaging the World Bank over the Container Port Performance Index and would provide access to its broader real-time vessel data.
The aim, she said, was not to dismiss the rankings, but to recognise shortcomings, improve coordination and reduce vessel call times.
Exporters call for implementation
Exporters Western Cape chairman Terry Gale said efficient logistics had become inseparable from export growth.
"Our exporters are ready to grow, invest and enter new markets, but the logistics system must be able to support that ambition. The commitment to a three-port system, better rail links and shared digital information is encouraging.
"The priority now must be implementation, with government, Transnet and the private sector working to clear bottlenecks and deliver measurable improvements," he said.
