Economic development

Privatised ports work faster, study shows

Exports and imports would flow quicker if South Africa’s ports were privatised, according to a study by a supply chain company.

The country’s ports rank among the worst in the world, and are frequently cited as a hindrance to trade. In 2023, the World Bank rated Cape Town the least efficient of the 405 container ports it measured. Port Elizabeth was down at 391 while Durban came in at 398.

Now, Link Supply Chain, co-owned by South African fruit exporters, has calculated that privatised ports are far more efficient than state-run ones.

A report in Freight News quoted Danica Potgieter, the company’s logistics coordinator, as saying that privatisation had redefined port operations across Africa.

“Major hubs like Tema (Ghana), Abidjan (Côte d’Ivoire), Tanger Med (Morocco) and Lomé (Togo) transitioned from slow, congested state-run systems into globally competitive trade engines shortly after privatisation,” she said.

“Meanwhile, South African ports like Durban and Cape Town continue to struggle with delays, inefficiency and infrastructure bottlenecks – costing the economy and weakening trade competitiveness.”

A study commissioned by the company found that most privatised ports operate at 25 to 40 gross crane moves per hour (GCH) while non-privatised ports, like Cape Town, maintain an average of 8-15.2 GCH.

Transnet, the state operator of South African ports, began a turnaround strategy in April last year but fruit industry insiders said the results thus far fall well short of what is required. Private investment in other African ports had yielded sterling results.