By Liesl Peyper.
The Port of Cape Town, which has been beset with inefficiencies, was ranked at the bottom of the latest Container Port Performance Index (CPPI) jointly compiled by the World Bank Group and S&P Global.
The index assesses and compares the performance based on vessel time spent in 405 ports worldwide.
According to the latest World Bank and S&P Global Container Port Performance Index for 2023, Cape Town ranked 405th, making it the worst-ranked port globally. Ngqura in the Eastern Cape was in the second worst position (404th), and Durban—one of the busiest ports in Africa — was in the 399th position.
The world’s top-ranked container ports in the index are Yangshan Port (China) in 1st and the Port of Salalah (Oman) in 2nd place. Both ports retained their ranking their 2022 ranking.
The best port in Africa was Tangier Mediterranean in Morocco, which was ranked in the fourth position globally.
Neighbouring ports, such as Maputo in Mozambique and Walvis Bay in Namibia, both outperformed those in South Africa, with Maputo ranked 325th and Walvis Bay in 380th position.
Commenting on Cape Town’s poor ranking in the latest index, Mireille Wenger, Western Cape MEC for Finance and Economic Opportunities, said there have been significant changes in the management of the Port of Cape Town, including the establishment of recovery targets.
“The most recent World Bank’s container port performance index … relates to performance in 2023. Make no mistake, there is much more work to be done to ensure that the Port of Cape Town realises its full potential and becomes a catalyst for economic growth and job creation it should be,” Wenger noted.
In the executive summary, the report’s authors note that container ports are critical nodes in global supply chains and essential to the growth strategies of many emerging economies.
“In numerous cases, the development of high-quality container port infrastructure operating efficiently has been a prerequisite for successful export-led growth strategies.
“Countries that follow such a strategy will have higher levels of economic growth than those that do not.
“The port, along with the access infrastructure (inland waterways, railways, roads) to the hinterland, is a vital link to the global marketplace and needs to operate efficiently.”
“Efficient performance encompasses several factors, such as the port’s efficiency itself, the availability of sufficient draught, quay, and dock facilities, and the quality of road and rail connections.
“Any inefficiencies or non-tariff barriers among these actors will result in higher costs, reduced competitiveness, and lower trade volumes.”
South Africa’s exports have been throttled by logistical challenges caused by ailing railways and inefficient ports with long waiting times for vessels that cause severe bottlenecks.
The crises at ports are due to years of under-investment in infrastructure and equipment and other operational inefficiencies.
In November last year, the Port of Durban saw numerous vessels and containers at anchor due to congestion and delays in loading cargo, which had retailers and importers, and exporters on tenterhooks merely weeks before the busy Christmas season.
In January, South Africa’s fruit industry and deciduous fruit sector faced a fourth consecutive export crisis due to equipment breakdowns and poor maintenance, causing backlogs and delays. The peak trading season started late.
Progress has been made in the last six months, with private sector participation in expansion projects at the Port of Durban and the operation of a bulk terminal in Cape Town.
Said Wenger: “The path forward to improved efficiency is clear – the private sector must be included in the operations of the container terminal urgently. The next few months will be critical to provide certainty to industry and all value chain stakeholders that the Port of Cape Town can operate efficiently and reliably, therefore enabling job creation and economic growth.”