Hill-Lewis hails private sector push at Cape Town port
· Citizen
Cape Town Mayor Geordin Hill-Lewis has welcomed Transnet’s move to seek a private operator for the Port of Cape Town’s multipurpose terminal, saying it is a reform the city has long called for.
Transnet National Ports Authority announced the launch of the 25-year concession through the publication of an official request for proposals (RFP) on the South African e-Tender portal on Friday (17 July), inviting private operators to bid for the concession.
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The successful bidder will be responsible for designing, financing, operating, maintaining and refurbishing the terminal at berths B, C and D, with additional construction where required.
The concession aims to improve capacity, productivity and cargo-handling reliability.
Bids close in November.
Broader reform
The concession forms part of Transnet’s broader turnaround strategy, with group chief executive Michelle Phillips saying the state-owned entity plans to invest more than R129 billion over the next five years to restore its sustainability and credibility.
Speaking at a conference hosted by supply chain industry body Sapics in Cape Town, Phillips said the Reinvent for Growth programme is focused on improving operational discipline, renewing equipment and expanding private sector partnerships to restore confidence in Transnet.
She said container volumes are improving across key terminals, private sector partnerships are gaining traction, and accelerated port equipment interventions are improving reliability and efficiency.
Economic opportunities
Transnet’s announcement about the concession comes as pressure mounts to improve port performance following the Port of Cape Town’s poor showing in the latest World Bank Container Port Performance Index (CPPI).
Hill-Lewis said in a media statement the city welcomes Transnet’s call for private sector partners to upgrade and operate the terminal.
“This is exactly the major reform we in the city have long been calling for.”
According to the mayor, greater private sector involvement, together with Transnet’s planned capital investment, could provide an economic boost for the region.
The city has repeatedly called for faster reforms after its port was ranked last in the 2025 CPPI – in 400th position, while Durban ranked 398th after improving from the previous year.
It said poor port performance continues to affect exports, investment and job creation.
James Vos, mayoral committee member for economic growth, says businesses, exporters and investors have consistently identified the Port of Cape Town’s performance as one of the biggest constraints on economic growth in the Western Cape.
He said Cape Town should have one of the most efficient ports because of its strategic location on one of the world’s busiest shipping routes.
Research commissioned by the Western Cape Government found that a more efficient Port of Cape Town could unlock about R6 billion in additional exports, support nearly 20 000 jobs and generate more than R1.6 billion in additional tax revenue.
‘An important step towards change’
Exporters Western Cape has also welcomed the news of the concession.
Chair Terry Gale said the organisation has consistently called for improvements in the port’s performance and believes this could only be achieved through meaningful private sector partnerships.
“Bringing in private investment and operational expertise is an important step towards creating a more efficient and reliable port. While the Port of Cape Town has faced significant operational challenges over many years, this decision represents an important step towards achieving the long-term change that exporters have been calling for.”
Gale added that delays at the port disrupted delivery schedules, increased costs and weakened South Africa’s competitiveness in global markets.
“Any initiative that improves the port’s operational performance is a positive development for the export sector.”
He said Cape Town has long had the potential to be one of Africa’s leading container ports and that a more efficient port will strengthen supply chains and support economic growth.