How Transnet hopes private investors can fix ‘world’s worst’ port
Transnet is seeking private sector partners to finance and operate the multipurpose terminal at the Port of Cape Town. This initiative aims to revitalize the facility, which was recently ranked as the world's worst-performing container port.
Why it matters
Improving port efficiency is critical for South Africa's trade capacity and economic recovery, as the current infrastructure bottlenecks hinder global export competitiveness.
Transnet, whose Port of Cape Town was recently ranked as the worst performer out of 400 in the world, has kick-started a process to bring in private sector cash and expertise to operate the key multipurpose terminal at the port.
The freight and rail group on Friday launched a request for proposal for a private sector partner to finance and build the terminal, which enables trade with about 20 countries.
Transnet is ramping up private sector participation at its marquee sea ports and rail network as part of the biggest reforms in a generation.
The successful bidder, which will have rights to operate the terminal for 25 years, will need to raise the capital to undertake and complete all the works required to bring the terminal into full operation.
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