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Port performance linked to GDP

06 Feb 2025 - by Ed Richardson
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There is a clear link between port productivity and growth in the gross domestic product (GDP) of countries in the region.According to courage Mlambo of the Mangosuthu University of Technology, port efficiency is a fundamental factor determining the trade competitiveness of a country.Improving container port performance lowers the cost of trade, contributes to food security, improves resilience and reduces emissions from vessels, according to World Bank lead transport economist Richard Humphreys.A study by PwC found that a 25% improvement in port efficiency could increase a country’s economic growth by 2%, demonstrating the close relationship between port effectiveness and trade competitiveness.One of the hidden costs is that of corruption, where middlemen bribe officials to clear goods faster. In addition to raising costs corruption undermines trust in the system, leading to further inefficiencies, according to Mlambo.The Transport Global Practice Container Port Performance Index 2023, which is based on vessel time in port, puts South African ports at the bottom of the list.The country’s economic performance is also the weakest in the region. ER

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