Challenges and Interventions in Port of Cape Town Container Logistics
The presentation discusses the challenges facing the Port of Cape Town's container logistics, such as congestion and inadequate infrastructure. It highlights root causes and proposes interventions for improvement, emphasizing the need for better coordination and communication among stakeholders in the logistics chain.
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Economic Development and Tourism STANDING COMMITTEE ON FINANCE AND ECONOMIC OPPORTUNITIES Port of Cape Town Container Logistics: Challenges and Interventions Glen Steyn 22 February 2024
Content of Presentation Background Challenges Economic Impact of the Logistics Chain Current Situation Priorities Going Forward
1. Background Cape Town has top performing container terminal capabilities (Bichou)
2. Challenges Root causes of congestion were identified as Institutional, including poor logistics integration, communications, industrial relations, data and weak voice of cargo owners, Old and inadequate fleet of heavy lifting equipment No strategy for cargo growth, seasonal peaks, high wind speeds and ranging Bunching of truck arrivals in the morning, with queuing on Marine Drive and Duncan Road
Background - Macro Logistics Chain for Port of Cape Town Containers National Government Provincial Government Industry Associations TNPA & Transnet OD s Packhouses Cold Stores DC s Container Depots Shipping Lines Exporters Importers Transporters Metro, District & Local Government
Projected Containerized Cargo 2026 Anticipated Growth is 26% 70,000 200 180 60,000 160 Average hours of operating time lost 50,000 140 120 40,000 TEUs 100 30,000 80 60 20,000 40 10,000 20 - - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Fruit-Very High: < 2wks Fruit-High: 2-4 wks Fruit-Moderate: 4-8 wks Fruit-Low: 8-16 wks Other Agriculture Mining Manufacturing Average lost hours
Root Causes of Transporter Congestion Terminal equipment Gate co-ordination Transporter behaviour Companies and drivers Planning & communication among different members in log chain Traffic management Wind/weather Institutional development for transporters
3. Contribution of CT Container Terminals to Western Cape Economy It is estimated that container terminals contributed towards R72.5 bn of the GVA in Western Cape in 2021 (8.6%) and to the creation/sustaining of 225,000 jobs. Taxes paid from these activities was almost R20 billion. Difference between high and low growth scenarios for 2026 (at current prices) is as follows: Indicator GVA R bn Jobs Remuneration R bn Taxes Paid R bn High Growth 74.7 240,000 32 21.8 Low Growth 69.1 220,500 29.9 20.2 Difference 5.6 19,500 2.1 1.6 DEDAT aims at facilitating the high-growth outcome in collaboration with all agencies in the port logistics chain.
4. Current Situation 1 2 Port Manager has hosted weekly operations co-ordination and quarterly strategy engagements with prominent logistics chain agencies for the past 2 years Senior Transnet and DEDAT managers met on 9 February to: Align Western Cape Growth4Jobs strategy with Transnet strategy for Western Region Discuss a list of urgent interventions (see last slide) Transnet leadership is committed to improved freight logistics 3 4 The 2024 Port of Cape Town stakeholder dialogue hosted by Minister Wenger on 13 Feb. Transnet Chairman of the Board and Acting GCE attended. Consensus was reached on: Alignment of strategies for economic growth and job creation (Best case scenario), Open line of communication on priority interventions, Partnerships where private sector capital investment and technology are needed Belcon inland terminal first phase was completed in November. Further development is underway
5. Proposed Way Forward Mobilise industry and public sector support for the Port of Cape Town container development plans by way of efficiency improvements, including interventions to pro-actively manage peaks in cargo volumes and recovery after adverse terminal events Develop a viable digital technology platform to facilitate cargo planning along the entire container logistics chain Reduce transporter congestion by way of appropriate and viable joint interventions Encourage viable private sector participation to contribute the resources and skills required to achieve and maintain fluid freight logistics Promote integration of the Transnet strategy in the Western Region and the Western Cape Growth for Jobs strategy to achieve best case outcomes for sustainable economic growth and employment. ECONOMIC GROWTH FOR JOBS THROUGH A COMPETITIVE PORT OF CAPE TOWN
