Western Cape Government welcomes move to attract private investment in rail and ports
Premier Alan Winde welcomes the announcement by national Minister of Transport, Barbara Creecy, to initiate a Request For Information (RFI) for private sector participation in South Africa’s rail and ports sectors.
“This is good news for our economy and makes it easier for more businesses in our province to thrive and create more jobs for our residents! For far too long these critical logistics sectors have been ignored and allowed to fall into disrepair and dysfunction, to the detriment of South Africa’s economy,” stated Premier Winde.
The Port of Cape Town and smaller ports in the Western Cape play are essential to the provincial and national economies.
The Western Cape Government, through its Growth for Jobs strategy, aims to triple exports to R450 billion and increase private sector investment to 20% of the province’s GDP.
“To achieve this, we must have fully operational harbours to drive economic growth and job creation,” stressed the Premier.
He added, “Equally as important to our economic growth aspirations is fixing the passenger rail and freight sectors. If we can get more of our residents into trains, we can address the road traffic gridlock that is impeding our economy. I urge Minister Creecy to proceed with the RFI with urgency. While we welcome this, the Western Cape Government will continue to push for the devolution of passenger rail services.”
The Western Cape's agricultural exports, currently constituting 55% of South Africa’s primary agricultural exports, have the potential to create 22,900 new jobs in the region through a 5% increase in exports.
“I welcome Minister Creecy's announcement to invite greater private sector involvement in the port, rail, and logistic networks. This holds the potential to significantly increase exports and imports in the Western Cape, thereby improving the region's economic outlook. It will also help reverse the losses suffered by the agricultural industry over the last few years, offering hope for a more prosperous future. Greater private sector involvement in our ports, rail, and logistics network is a crucial component of our Growth for Jobs strategy,” said Dr Ivan Meyer, Western Cape Minister of Agriculture, Economic Development and Tourism.
Western Cape Minister of Mobility, Isaac Sileku, said, “This is a positive move towards the reform of rail and the actualisation of commitments made in the Roadmap for Freight Logistics and the White Paper on National Rail Policy. On average, the Northern Cape to Saldanha corridor transported 50.85 million tons of Iron Ore and 4.4 million tons of Manganese between 2022 and 2023. Therefore, this move will present immense opportunities for private investment in rail, which will drive efficiencies and spur on a much-needed modal shift from road to rail. We encourage stakeholders in the Western Cape and beyond to engage with the RFI process to help unlock the full potential of our rail and logistics network.”
Premier Winde, concluded, “Safe, affordable, and reliable public transport is critical for the success of our economy. In the Western Cape, passenger and freight rail must be the backbone of that system. We must do everything we can to turn these critical logistics hubs into engines of growth and job creation.