Private partner wanted for Cape Town terminal

Transnet National Ports Authority (TNPA) has invited private-sector bidders to compete for a 25-year concession to develop, finance, operate and maintain the multi-purpose terminal at the Port of Cape Town.

The request for proposals (RFP), issued on July 17, covers the terminals B, C and D berths. The successful bidder will design, finance, construct or refurbish, operate and maintain the facility before transferring it back to TNPA at the end of the concession period.

Under the concession, the successful bidder will be responsible for financing the required capital investment, maintaining the terminal and its equipment, and meeting TNPA's prescribed operational and performance requirements throughout the 25-year concession period.

The terminal handles a range of cargo, including containers, breakbulk, dry bulk and other compatible commodities, but excludes petroleum products. It will continue operating as a common-user facility serving multiple shipping lines and cargo owners.

According to the RFP, bidders must submit a comprehensive business plan and works programme outlining how they intend to modernise and operate the terminal, including proposed capital investment, equipment upgrades, operational improvements and implementation timelines.

The successful bidder will also be required to comply with environmental, health and safety requirements, maintain the terminal to prescribed standards, and meet economic development obligations, including B-BBEE and supplier development commitments.

Operational performance will be measured against TNPA's Terminal Operator Performance Standards (TOPS), with key performance indicators covering cargo throughput, productivity, vessel turnaround times, berth occupancy, road and rail efficiency and equipment availability. Compliance will be assessed quarterly throughout the concession.

Prospective bidders are required to attend a compulsory briefing session on August 6 before submitting proposals by November 20.

Cape Town Mayor Geordin Hill-Lewis welcomed the launch of the tender, saying greater private-sector participation at the port was a reform the City had long advocated.

"A more efficient port means more job-creating economic growth for Cape Town," Hill-Lewis said, adding that the City would continue supporting Transnet's efforts to expand and improve port operations.

The City said improved port performance could unlock about R6 billion in additional exports, support nearly 20 000 jobs and generate more than R1.6bn in additional tax revenue, citing research commissioned by the Western Cape Government.

The Cape Town concession forms part of Transnet's broader private-sector participation programme, which aims to attract private capital and operational expertise to improve port efficiency, expand capacity and support export growth. Recent requests for proposals have also been issued for the Port of Cape Town's liquid bulk and cold storage terminals.

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