Transnet’s move towards greater private sector participation welcomed

The recent news that Transnet has published a call to the market for a 20-year lease on the Durban to Johannesburg rail container line is welcomed.

It is the Western Cape Government’s view that private sector participation will be essential to boost investment in infrastructure, improve efficiency and performance and ultimately, unlock private sector-led economic growth that creates jobs.

We would now like to see similar momentum towards private sector participation at Transnet assets in the Western Cape, with a special focus on the Port of Cape Town. It is our view that President Cyril Ramaphosa should make this Port an Operation Vulindlela priority, as he has done with the Ports of Durban and Ngqura, so that this can happen with speed.

According to our own research, a high growth scenario at the Port of Cape Town can contribute an additional R6 billion in exports, roughly 20,000 more direct and indirect jobs, and over 0.7% to the Western Cape Gross Domestic Product by 2026. This high growth scenario will require the private sector’s involvement.

The choice is therefore very clear: more private sector participation means more growth, and more growth means more jobs, at precisely the time when our country needs them most.

I am heartened by the strong collaboration with key stakeholders in the Port of Cape Town value chain and that there is agreement that an appropriate model of private sector participation at this Port needs to be identified. It’s time to move with determination in making this happen so that we can help boost growth and jobs in South Africa.

Source: Government of South Africa