Western Cape Funding and Economic Opportunities on 2021 Exports and Imports

A total of R110.49 billion of exports and R99.96 billion of imports were handled through the Port of Cape Town in 2021, for a total of R210.45 billion.

This is according to a research report presented at a seminar with stakeholders from across the port logistics value chain and organized by the Ministry of Economic Development and Tourism on September 6, 2022.

Today, the reports have been made available to the public and can be viewed here.

Reports include:

  1. The Economic Impact of Cape Town Container Terminals
  • The aim of this project was to provide a quantitative indication of the economic importance of Cape Town container terminals to the economy of the Western Cape and South Africa and to contribute to the changing role played by government of the Western Cape by supporting initiatives that can contribute positively to enhancing the future economic contribution of these container terminals.
  • Each year, the PoCT handles around 18-20% of the total volume of South African port containers.
  • In 2021, a total of 52% of all Western Cape exports were exported through the Port of Cape Town, worth R86.482 billion, showing its importance to the Western Cape economy.
  • A total of R110.496 billion in exports were exported through the Port of Cape Town in 2021.
  • In 2021, imports worth R99.96 billion were imported through the Port of Cape Town.
  • The value of total exports increased by 184% over the period from 2010 to 2021.
  • Other fresh fruits increased by 5125% over the same period, while citrus exports increased by 297% and grape exports by 238%.
  1. The Root Causes of Carrier Congestion
  • The purpose of the study was the objective of the study was to map the supply chain of container trucks to identify key points of congestion, corresponding root causes, determination of congestion costs and identification of opportunities improvement
  • The cost of truck delays for all container terminal truck owners is, on average, R330,000 per day.
  • The main causes of truck delays include:
  • Wind/weather: 30%
  • Closing the door, including shift change: 9%
  • Battery congestion and computer system failure: 4%
  • Unexplained, including terminal capacity limitations – 57%
  1. Improvement of the freight request model for the Port of Cape Town
  • This report presents enhancements to the Provincial Freight Demand Model™ for containerized freight through the Port of Cape Town to serve as an integrated database for short to medium term capacity planning and response implementation.
  • Fruit exports have the potential to grow by 26% over the next 5 years. Capacities will need to be created in the supply chain to accommodate this growth.
  • Non-containerized (bulk) imports of 4.3 million tonnes account for almost half (45%) of Cape Town’s port flows, while containerized imports of 1.9 million tonnes account for a further 20%. This reinforces the reputation of PoCT as a port mainly oriented towards imports (6.2 million tonnes, 65% of all flows) in terms of volume.
  1. Projection of wine exports through the port of Cape Town
  • This report aims to build on existing research and data analysis coordinated by the Department of Economic Development and Tourism to incorporate a wine export module to support improved port efficiency at the Cape Town Container Terminal (CTCT).
  • Wine exports are expected to increase 7% in 2022 and 12% in 2023 from the 2021 base level, which will increase the current pressure on the CTCT – especially during the peak periods of citrus exports and pome fruits.
  • South Africa’s wine exports have grown from R1.95 billion in 2001 to R11.1 billion in 2021. This equates to an average growth of 9% per year over this period.
  • The wine value chain is made up primarily of 2,696 primary farmers who produced approximately 1.3 million tonnes of grapes for later use in winemaking. There are then about 529 wine cellars scattered mainly in and around the Western Cape.
  • It is estimated that wine exports will reach 407 million liters in 2022 and increase further to 425 million liters in 2023.

The main objective of the seminar was to present the main conclusions of the reports and, ultimately, to reach a consensus among the various stakeholders on how to increase the efficiency of the port.

The next step will be to engage the different operational divisions of Transnet to develop consensus on implementation priorities.

At the forefront of these discussions will be the implementation of the near-term interventions needed to facilitate a successful table grape and deciduous fruit export season for 2022, which begins in December.

It will also require improved capital expenditure at the port, which we believe must include private sector participation.

Working with all stakeholders in the port logistics value chain remains a key priority for the Western Cape Government because if the port operates more efficiently we can increase economic growth which will lead to the creation of jobs in the province.

Distributed by APO Group on behalf of the South African Government.