SUPPLY CHAIN

Underperforming Port of Cape Town seeks a private sector boost

By our African Marketing Confederation News Team | 2026

Cape Town’s port must be a competitive advantage rather than a bottleneck that constrains tradeinvestment and supply chains.

Busy port with cranes, warehouses, and a red training ship docked at the quay; city and hills in the background.

Photo: SkyPixels via Wikimedia Commons

Transnet, the operator of South Africa’s National Ports Authority, will seek a private operator for the Port of Cape Town’s multipurpose terminal in the wake of the port’s poor performance in the latest World Bank Container Port Performance Index. 

 

Cape Town was ranked 400th out of 400 container ports globally, a rock-bottom position driven by extended vessel turnaround times, severe weather and aging equipment. It has had a similar ranking in other recent indexes. 

 

However, local experts have said there has been a marked improvement in port performance of late, including reduced vessel anchorage time and increased port productivity. Some prominent stakeholders believe South Africa urgently needs to develop its own assessment tools to provide a more holistic analysis of the logistics ecosystem. 

 

Nevertheless, Transnet last week announced a 25-year concession to operate the multipurpose terminal through the publication of an official request for proposals from the private sector. The aim is to improve capacity, productivity and cargo-handling reliability.  

 

“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,” reports the business news website Moneyweb. 

 

Cape Town’s mayor welcomes Transnet decision 

 

In a press release issued on 20 July 2026, Cape Town Mayor Geordin Hill-Lewis welcomed Transnet’s call for private sector partners. 

 

“We welcome Transnet’s call for private sector partners to upgrade and operate the multipurpose terminal at the Port of Cape Town – this is exactly the major reform we in the city have long been calling for,” the mayor said. 

 

“A more efficient port means more job-creating economic growth for Cape Town. We are optimistic about an economic boost for our region due to greater private sector involvement at the port, as well as Transnet’s capital investments to improve operations.” 

 

Alderman James Vos, Mayoral Committee for Economic Growth, said port efficiency remains a top concern for business in the region. 

 

“In our engagements with businesses, exporters and investors, one issue consistently rises to the top of the agenda: the performance of the Port of Cape Town. Whether it is agricultural producers trying to get fresh produce to overseas markets, manufacturers moving goods through supply chains, or logistics operators attempting to plan with certainty – their message is remarkably consistent. The port remains one of the biggest constraints on economic growth in the Western Cape,” he stated. 

 

“Cape Town should have one of the most efficient ports on the African continent. We are strategically located on one of the world’s busiest shipping routes. We are home to a diverse and growing economy, world-class industries and a globally recognised tourism destination. We believe that with continued reforms, Cape Town’s port can be a competitive advantage that strengthens our position as a leading hub for trade and investment, rather than a bottleneck that constrains growth.”

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Jason Lottering