The decision by the Transnet National Ports Authority (TNPA) to seek a private operator for part of the Cape Town port has caused concern among exporters. They argue that uncertainty regarding the scope of the concession could create confusion for port users and the entire logistics industry.
The Request for Proposals (RFP) was published on Friday. It aims to find an operator responsible for the design, financing, operation, and maintenance of a multi-purpose container terminal over a 25-year concession period.
Despite the authority opening another terminal for private participation, Terry Gale, Chairman of Exporters Western Cape (EWC), stated that many participants in the process have misinterpreted the essence of the concession. He noted that nine out of eleven port terminals are already privately operated.
Gale clarified that the announcement caused confusion in the logistics and export sectors because many took it as a transfer of rights to the existing Cape Town Multi-Purpose Terminal (CTMPT), managed by Transnet Port Terminals (TPT). However, according to Gale, 'that is not the case. The RFP specifically covers berths B to D, which are currently used by the Fresh Product Terminals (FPT)'.
According to the RFP, bidders must submit proposals for the right to finance, upgrade and/or construct, as well as operate and maintain the Multi-Purpose Terminal at berths B to D. Furthermore, the transport of liquid cargo, such as petrochemical products, is excluded from this concession.
The document states that berths B to D are currently used for storing and handling cargo and containers. The total area of the site is 119,849 m², and the total building area is 41,449 m².
Gale emphasized the importance of clarification from TNPA, as the future functioning and development of various terminal facilities will directly affect exporters and other port users. He added that FPT has successfully managed berths B to D in recent years, consistently meeting targets. Since the handover to Africa Global Logistics in April 2025, operations have also utilized berth A, increasing value for the industry.
While EWC supports increased private sector participation and investment in the Cape Town port, they insist that the process be clearly communicated to all stakeholders and based on achievements already made. Gale believes that the private sector plays a vital role in increasing the port's throughput, reliability, and competitiveness, but participants need certainty about exactly which facilities are involved, what will happen to the current operator, and how the concession will affect current cargo operations.
In weekly stakeholder meetings, EWC constantly advocates for more efficient use of the CTMPT. They believe it should be modernized and equipped with ship-to-shore cranes to provide additional container handling capacity when the main container terminal is unavailable.
At the time of publication, TNPA had not responded to requests for clarification on the RFP. Earlier this month, TNPA announced plans for new requests for proposals for both the Multi-Purpose Terminal and a floating dock intended to expand ship repair capabilities.
Ofelia Shabane, the acting manager of the Cape Town port, reported that the port continues to show measurable progress in improving operational performance and service delivery. She noted that these achievements demonstrate the effect of targeted measures, infrastructure investments, and close collaboration with terminal operators and industry stakeholders. She stressed that the port remains focused on building a sustainable, efficient, and globally competitive facility that supports economic growth and facilitates trade.
DA Member of Parliament, Chris Hansinger, welcomed the announcement. He noted that this is a significant step forward, but it only pertains to the Cape Town Multi-Purpose Terminal, not the Container Terminal, and requires subsequent large-scale reform in South African ports. Hansinger added that recent improvements in Transnet's financial performance prove that further reform is both possible and necessary, and he calls for accelerating private investment, expanding long-term concessions, and introducing genuine competition into the national port system.
Supply chains in South Africa are facing significant disruptions caused by geopolitical tensions and growing cyber threats. As costs rise and operational difficulties increase, businesses are forced to adapt strategically to secure their future.
Amid uncertainty, South African companies are grappling with a changing supply chain management landscape. According to the latest CIPS Pulse Survey for Q2 2026, while concerns about supply chain disruptions have slightly eased from record highs, risks associated with geopolitical instability remain substantial. Vigilance is crucial for organizations across South Africa.
The CIPS survey results indicate that procurement and supply chain professionals are experiencing an unprecedented level of anxiety. Despite a slight decrease in short-term disruption fears, long-term issues remain alarmingly high. This suggests that businesses are adapting to a 'new normal' characterized by constant global unpredictability, rather than a stable return to previous conditions.
South Africa's strong reliance on international supply chains creates a unique set of challenges. The region's heavy dependence on imported fuel, industrial equipment, chemicals, pharmaceuticals, and various manufacturing components underscores the critical need for uninterrupted logistical operations. Key sectors such as mining, agriculture, automotive, and retail rely on these global networks to maintain competitiveness.
The CIPS survey highlighted the conflict in the Middle East as the primary source of supply chain concern, confirmed by 75% of surveyed procurement specialists. Broader geopolitical tensions (67%) and the ongoing war in Ukraine (33%) exacerbate the situation. Despite geographical distance, these conflicts significantly impact South Africa by affecting freight routes, delivery costs, energy markets, and overall supplier availability.
Another emerging issue is the escalation of cyber risks. The survey showed that cyberattacks have surpassed logistics disruptions as one of the most pressing threats for procurement professionals. There is a growing realization that incidents affecting suppliers or critical infrastructure can quickly lead to operational failures, production stoppages, and delays in vital supplies.
For South African enterprises, the consequences are serious. The survey forecasts rising costs in several critical sectors, including shipping and logistics, oil and gas, mining, chemicals and pharmaceuticals, food and beverages, and sheet metal products. These increases could lead to higher transportation expenses, increased prices for imported goods, and higher food costs, potentially putting pressure on local economies.
To cope with these numerous challenges, companies are prioritizing resilience over mere cost-cutting. Key strategies for ensuring supply continuity include diversifying suppliers, extending supplier contracts, and maintaining buffer stocks. Paul Vos, Regional Managing Director of CIPS Southern Africa, warns that although some inflationary pressures have begun to ease, the operating environment for businesses remains unpredictable. He notes: 'Organizations can no longer assume that global supply chains will return to pre-crisis norms.'
Vos emphasizes the strategic advantage that resilience can offer businesses, asserting that it is vital to develop broader supplier networks and strengthen regional sources. Furthermore, improving supply chain transparency and enhancing the importance of procurement functions within organizations can lead to more robust operational structures.
Ben Farrell MBE, Global CEO of CIPS, comments that global trade is undergoing a fundamental transformation amid these challenges. He stated: 'The tectonic plates of world trade are shifting.' As regionalization gains momentum and globalization evolves, businesses that cultivate resilient regional partnerships will be best positioned to thrive.
Moreover, the survey indicates that one-third of organizations are already feeling the impact of recent changes in US tariff policy, and another 37% are closely monitoring developments, further demonstrating how uncertainty in trade policy complicates procurement strategies alongside geopolitical turmoil.
In light of these findings, Dr. John Glenn, Chief Economist at CIPS, cautions that despite a slight easing of sentiment, concerns regarding geopolitical shocks, cyber risks, and general uncertainty remain alarmingly high, exposing economies to potential operational disruptions.
