Exporters Western Cape (EWC) has underscored the urgent need for focused action to unlock the full potential of Cape Town’s port and maritime economy, warning that the current environment will not translate into growth without improved efficiency and coordination.
This follows a recent industry engagement where shipping expert Brian Ingpen and Louis Niemand, Investment Director at Ninety One addressed members, reinforcing concerns already being raised by exporters across the supply chain.
According to Terry Gale, EWC chairman, important improvements have been made at the Port of Cape Town, including upgrades to the container terminal, new cranes, additional straddle carriers, a deepened container basin and key private sector concessions, but these have not yet delivered the level of efficiency required to fully capitalise on current market conditions.
“The current situation in the Middle East has resulted in more vessels moving around the Cape of Good Hope, but we are not yet fully leveraging that,” he said.
Ingpen concurred, noting that even without increased vessel movement, at least 80 vessels bypass the Cape daily.
“If we can entice even 10 ships a day to come into port to bunker, we will make money and start filling empty berths. The financial potential of a bunkers-only ship is significant. One vessel can leave behind at least a million rand, excluding the fuel. You bring a ship in to bunker and yes, you sell fuel, but they always need something else. That is where the real value comes in,” he said.
Ingpen added that the potential extended beyond bunkering, with ship repair services also offering significant value if the right infrastructure and capacity were in place. He cautioned, however, that unlocking this would require addressing key operational constraints, including fuel availability, service efficiency and cost competitiveness.
“There is an urgent need to expand container handling facilities, improve the positioning of infrastructure like the reefer stack and invest in additional gantry cranes to speed up operations. The ship turnaround time will be much more rapid,” he said.
The focus is no only on cargo, with the growing cruise sector highlighting what is possible when the right conditions are in place. The industry is estimated to contribute close to US$2 billion to Cape Town each season, with value extending beyond passenger spend to provisioning, refuelling and a range of associated services. Recent geopolitical disruptions have further elevated Cape Town’s profile, as vessels reroute around conflict-affected regions, introducing new operators to the destination.
These developments are unfolding against a rapidly shifting global backdrop. Niemand highlighted how quickly conditions have changed, with markets moving from a period of strong growth and easing inflation to a far more uncertain environment driven by conflict in the Middle East and instability around key shipping routes such as the Strait of Hormuz.
He said the impact was already evident through higher oil prices, rising inflation expectations and a shift in interest rate outlooks, with South Africa particularly exposed given its reliance on imported oil and sensitivity to currency movements.
“The news flow changes every single day in terms of whether the Strait is open or not and markets are moving between 5% and 10% every time things change. At the same time, the oil price is not going back to $60 per barrel in the short term, which means structurally higher inflation and interest rates are not coming down anymore,” he said.
Niemand said the global outlook was now less positive than it had been at the start of the year, with expectations shifting from interest rate cuts to the likelihood of at least two interest rate hikes in South Africa in the coming months.
“South Africa is highly sensitive to oil prices and a weaker rand. When global uncertainty rises, you get both at the same time and that is a double negative for the economy. Our inflation pressure is not coming from strong growth, it’s coming from external shocks,” he said.
Gale said that while global conditions remain outside of South Africa’s control, the local response must be within it.
“We cannot control global events, but we can control how we respond. The opportunity is there, but it requires decisive action and improved efficiency. Working together, we can drive change now,” he concluded.
