Cape Town welcomes Transnet call for private port partners

The City of Cape Town has welcomed Transnet's request for proposals to redevelop and operate the multipurpose terminal at the Port of Cape Town under a 25 year concession.

Transnet is seeking private sector partners to upgrade the multipurpose port terminal. This follows recent requests for proposals to operate the cold storage and liquid bulk terminals.

The RFP, issued on 17 July, covers the terminal's B, C and D berths. The successful bidder will design, finance, construct or refurbish, operate and maintain the facility before transferring it back to TNPA at the end of the concession period. The terminal handles containers, breakbulk, dry bulk and other compatible commodities, but excludes petroleum products, and will continue operating as a common-user facility serving multiple shipping lines and cargo owners.

Bidders must submit a comprehensive business plan and works programme covering proposed capital investment, equipment upgrades, operational improvements and implementation timelines. They will also be required to meet environmental, health and safety requirements, B-BBEE and supplier development obligations, and TNPA's Terminal Operator Performance Standards (TOPS), against which key performance indicators including cargo throughput, productivity, vessel turnaround times, berth occupancy, road and rail efficiency and equipment availability will be measured. Compliance will be assessed quarterly throughout the concession period.

Cape Town Mayor Geordin Hill-Lewis said the move represents a major reform the city has long called for. He stated that a more efficient port could lead to job creating economic growth for the region through greater private sector involvement, with the successful bidder responsible for financing the required capital investment in operations. Hill-Lewis also cited Transnet's R3.4 billion in capital investment to improve operations as grounds for optimism, and said the City would continue to support Transnet's efforts to expand and improve port operations.

Exporters Western Cape has also welcomed the concession. Chair Terry Gale said the organisation has consistently called for improvements in port performance and believes meaningful private sector partnerships are the only way to achieve them. Gale noted that delays at the port disrupt delivery schedules, increase costs and weaken South Africa's competitiveness in global markets, and said Cape Town has long had the potential to be one of Africa's leading container ports, with a more efficient port set to strengthen supply chains and support economic growth.

Research commissioned by the Western Cape government indicated that improving port efficiency could unlock approximately R6 billion in additional exports. The study also suggested the improvements could support nearly 20,000 jobs and generate more than R1.6 billion in additional tax revenue for the provincial economy.

Western Cape Premier Alan Winde and Western Cape Minister of Agriculture, Economic Development and Tourism Dr Ivan Meyer have also welcomed the announcement. Premier Winde said efficient ports help businesses grow, attract investment, expand exports and create jobs, and strengthen the Western Cape's ability to compete globally. Minister Meyer said a more efficient Port of Cape Town is ultimately about jobs, noting that when exporters can move their products to market faster and at lower cost, businesses can expand production, access new markets and employ more people. Both the Premier and the Minister noted that the reform aligns closely with the Western Cape Government's Growth for Jobs Strategy, which identifies efficient logistics infrastructure as a critical enabler of economic growth and employment creation.

The most recent Container Port Performance Index ranked Cape Town last among 400 container ports worldwide, with Durban ranked 398th in the same index after improving from the previous year, underlining the scale of the challenge facing any incoming operator. Andrew Pike, head of the ports, transport and logistics practice at law firm Bowmans, said greater private-sector participation could help improve operational efficiency and strengthen service delivery, though he cautioned that the success of any concession would depend on effective implementation, regulatory certainty and sustained investment in infrastructure and equipment. Pike noted that Treasury has been putting pressure on Transnet to bring about fundamental reform with the private sector and improve general performance, adding that the process appears to be moving in that direction, albeit slowly.

Economic Growth MMC Alderman James Vos said port performance is a consistent concern for regional businesses, exporters, and investors. He noted that the port currently acts as a constraint on economic growth for agricultural producers, manufacturers, and logistics operators. Vos added that Cape Town should have one of the most efficient ports given its strategic location on one of the world's busiest shipping routes.

The initiative aims to transform the port from a bottleneck into a competitive advantage for trade and investment. The city has been advocating for Transnet to accelerate plans to improve efficiency at the facility.

The concession forms part of Transnet's broader Reinvent for Growth turnaround programme. Group chief executive Michelle Phillips, speaking at a Sapics supply chain conference in Cape Town, said Transnet plans to invest more than R129 billion over the next five years to restore operational sustainability and credibility, with private sector partnerships, equipment renewal and improved operational discipline at the core of the strategy.

The Democratic Alliance has also welcomed the concession, describing it as an important and necessary reform that reflects longstanding calls from the DA, the City of Cape Town, the Western Cape Government and the business community for greater private-sector participation at the port. DA MP Dr Chris Hunsinger cautioned, however, that the concession applies only to the Multipurpose Terminal and not the Container Terminal, and must be followed by wider reform across South Africa's ports. Hunsinger pointed to recent improvements in Transnet's financial performance as evidence that further reform is both possible and necessary, noting that Transnet narrowed its net loss by 74 percent to R1.9 billion during the 2025 financial year, increased revenue by 7.8 percent to R82.7 billion and grew core operational profit by 39.4 percent to R30.6 billion. The DA said it would use its role in Parliament's Portfolio Committee on Transport to drive legislative reforms that accelerate concessioning, strengthen independent regulation and remove barriers to private investment across the national ports system.

Prospective bidders must attend a compulsory briefing session on 6 August before submitting proposals by 20 November.

This follows earlier local coverage of Minister demands urgent Port of Cape Town repairs.

Frequently asked questions

What did the DA say about the Cape Town port concession?

The DA welcomed it as an important and necessary reform but cautioned that it applies only to the Multipurpose Terminal, not the Container Terminal, and must be followed by wider national port reform.

How did Transnet perform financially in the 2025 financial year?

Transnet narrowed its net loss by 74 percent to R1.9 billion, grew revenue by 7.8 percent to R82.7 billion and increased core operational profit by 39.4 percent to R30.6 billion.

Which DA representative commented on the concession?

DA MP Dr Chris Hunsinger issued a statement welcoming the concession while calling for broader reforms across South Africa's ports.

Source: polity.org.za, capetownetc.com, freightnews.co.za, primediaplus.com, moneyweb.co.za, westerncape.gov.za, ewn.co.za, iol.co.za, da.org.za, enca.com