The City of Cape Town has recognized the announcement by Transnet to find a private partner for the port's development as a crucial move. James Vos, a member of the mayoral committee for economic growth, highlighted the announcement as a pivotal moment to enhance the port's productivity. He pointed out the negative impact of the port's inefficiencies on both exporters and consumers in South Africa, emphasizing the significant role the port plays in the national economy.
Following a call by Transnet National Ports Authority for bids on a 25-year concession to manage a liquid bulk terminal, the move has been seen as opening the door for substantial private sector involvement. The expected outcomes include a boost in exports by R6 billion, the creation of approximately 20,000 jobs, and an increase in tax revenues by more than R1.6 billion over five years, according to data from the Western Cape's Department of Economic Development and Tourism.
Vos underscored the city's proactive stance in advocating for such operational shifts at the port, citing ongoing discussions with the national government and stakeholders. He stressed the importance of Transnet conducting a thorough vetting process for bidders to ensure that only reputable entities are awarded contracts, drawing lessons from past contracting issues. The initiative is seen as a significant step towards unlocking economic growth potential for the city.
Source: freightnews.co.za
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