South Africa: Western Cape Finance and Economic Opportunities on 2021 Exports and Imports
Port of Cape Town processed R210 billion worth of exports and imports in 2021
CAPE TOWN, South Africa, September 15, 2022/APO Group/ -- 
In total R110.49 billion worth of exports and R99.96 billion worth of imports were processed via the Port of Cape Town in 2021, totalling R210.45 billion.


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


Today, the reports have been made available to the public and can be accessed&nbsp;<a href="https://www.westerncape.gov.za/site-page/economic-sector-support-sector-research-and-events-port-cape-town-research">here</a>.


The reports include:


<ol>
	<li>The economic impact of Cape Town container terminals</li>
</ol>

<ul>
	<li>The purpose of this project was to provide a quantitative indication of the economic importance of the Cape Town container terminals to the Western Cape and South African economy and to contribute towards the evolving role played by the Western Cape Government in supporting initiatives that can contribute positively towards enhancing the future economic contribution of these container terminals.</li>
	<li>Annually, the PoCT handles around 18-20% of the total South African port container volumes.</li>
	<li>In 2021 a total of 52% of all Western Cape exports were exported via the Port of Cape Town, amounting to R86.482 billion, showing its importance to the Western Cape economy.</li>
	<li>In total R110.496 billion worth of exports were exported via the Port of Cape Town in 2021.</li>
	<li>In 2021, R99.96 billion worth of imports was imported via the Port of Cape Town.</li>
	<li>The value of total exports increased 184% over the period from 2010 to 2021.</li>
	<li>Other fresh fruit increased by 5125% over the same period, while citrus exports increased 297% and grape exports increased 238%.</li>
</ul>

<ol>
	<li>The root causes of transporter congestion</li>
</ol>

<ul>
	<li>The purpose of the study was objective of the study was to map the container truck logistics chain to identify key points of congestion, the corresponding root causes, the determination of the congestion costs and the identification of opportunities for improvement</li>
	<li>The cost of truck delays for all truck owners for the container terminals is, on average, R330 000 per day.</li>
	<li>The main causes of truck delays include:</li>
	<li>Wind/weather: 30%</li>
	<li>Gate closure, including shift change: 9%</li>
	<li>Stack congestion and IT system failure: 4%</li>
	<li>Unexplained, including terminal capacity limitations &ndash; 57%</li>
</ul>

<ol>
	<li value="3">Freight Demand Model Enhancement for Port of Cape Town</li>
</ol>

<ul>
	<li>This report sets out enhancements made to the Provincial Freight Demand Model&trade; for containerised cargo through the Port of Cape Town to serve as an integrated evidence base for the short - to medium-term capacity planning and implementation of interventions.</li>
	<li>Fruit exports have the potential to grow by 26% over the next 5 years. Capacity will need to be created in the logistics chain to accommodate this growth.</li>
	<li>Non-containerised (bulk) imports of 4.3 million tonnes represent nearly half (45%) of the Port of Cape Town&#39;s flows, while containerised imports of 1.9 million tonnes account for a further 20%. This supports the PoCT&#39;s reputation as a predominantly import-orientated port (6.2 million tonnes, 65% of all flows) in terms of volume.</li>
</ul>

<ol>
	<li value="4">Projection of Wine Exports via Port of Cape Town</li>
</ol>

<ul>
	<li>This report aims to build on existing research and data analyses coordinated by the Department of Economic Development and Tourism to incorporate a wine export module to support improved port efficiency at Cape Town Container Terminal (CTCT).</li>
	<li>Wine exports are expected to increase by 7% in 2022 and 12% in 2023 from the base level of 2021, which will increase current pressure on CTCT - especially during the peak citrus and pome fruit export periods.</li>
	<li>South Africa&rsquo;s wine exports grew from R1.95 billion in 2001 to R11.1 billion in 2021. This is the equivalent of 9% average growth per annum over this period.</li>
	<li>The wine value chain is made up firstly of 2 696 primary farmers that produced around 1.3 million tons of grapes to be further used for wine making. There are then around 529 wine cellars scattered mostly in and around the Western Cape.</li>
	<li>It is estimated that wine exports will grow to 407 million litres in 2022 and further increase to 425 million litres in 2023.</li>
</ul>

The main purpose of the seminar was to present the main findings of the reports and to ultimately to build consensus between the various stakeholders on how to increase efficiency at the Port.


The next step will be to engage the various operating divisions of Transnet to develop consensus on priorities for implementation.


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


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


Collaborating with all stakeholders in the port logistics value chain remains a key priority for the Western Cape government because if the port works more efficiently, we can increase economic growth which will lead to job creation in the province.



Distributed by APO Group on behalf of South African Government.