Good news about Cape Town harbour

South Africa’s ports company plans an upgrade of facilities and equipment at the Cape Town harbour that should alleviate congestion and help the nation’s export-oriented agricultural sector expand its offerings overseas.

The plan includes developing 30 hectares of land that Transnet National Ports Authority owns but underutilises at the port for R2.5 billion.

“This will be used to build new warehousing and other back-of-harbour services and facilities,” Rajesh Dana, TNPA’s acting executive for the western region, told lawmakers during a briefing.

It will use another R1.8 billion to buy new cranes and other harbour equipment, he said.

“We welcome any plan to improve our ports,” Wandile Sihlobo, the chief economist at the Agriculture Chamber of Business, said by phone.

“We expect exports to increase by 30% over the next five years, so we expect Transnet to be making more of that kind of investment.”

South African agricultural exports rose 10% in the first quarter to $3.36 billion from a year earlier as port performance improved and shipments to the US climbed.