Port of Cape Town sees revival despite US tariffs

By Diane Silcock

THERE’s been a marked turnaround at the Port of Cape Town after years of a lack of upgrades at South Africa’s ports, which culminated in last year’s logistical crisis costing South African exporters and industries billions of rands. But the US tariffs could scupper the gains made over the past 12 months. This is according to Exporters Western Cape, an organisation which represents the province’s diverse export community.  

The organisation, which works closely with port authorities, government, and international trade partners to facilitate improved export conditions and advocate for trade-supportive policies, says that operations at Cape Town terminals have “improved exponentially” compared to a year ago, with container movement and turnaround times significantly enhanced.

Port performance exceeds expectations

“The Cape Town Container Terminal (CTCT), Cape Town Multi-Purpose Terminal (CTMPT), and the Fresh Produce Terminal (FPT) have all reported exceeding operational targets in recent weeks,“ says Terry Gale, chairman of Exporters Western Cape. “We’ve seen a turnaround—performance is better, and the port is ready for exports. It’s a big change from where we were even six months ago.”

Gale attributes this to stakeholder engagement and upgrading of outdated and unreliable infrastructure. A major win has been the gradual resolution of a severe equipment shortfall. The port previously suffered from a dramatic decline in rubber-tyred gantries (RTGs). 

Second-hand replacements from the US proved unreliable, but a new batch of RTGs has already enhanced the movement of containers at the terminals. A further 11 RTGs are due to arrive in September for the peak summer export season, which will further boost container-handling capacity.

Direct US route gives Cape Town competitive edge

Gale points out that a major strength of Cape Town’s port is its direct route to the US East Coast. “Once the vessel leaves Cape Town, it’s full steam ahead, arriving in New York within 16 to 18 days. It’s a quick transit time and a weekly service, hence it’s been a very big selling factor for South Africa.”

This has made the US South Africa’s most profitable and accessible trade market from the Western Cape, especially for perishable exports like citrus, grapes, and blueberries.

“By contrast, exports to other markets, such as Singapore and Australia, are routed through hubs with transit times being 50 to 60 days. That kills the market for time-sensitive goods,” says Gale.

Looking ahead: Unity, investment and political will

Even though the momentum in the Port of Cape Town is positive, Gale says public-private partnerships are essential for long-term success, and if South Africa is to attract foreign investors, the process should not be fraught with delays and objections, which has been the case.

He expressed how concerning the US reciprocal tariff is. “The Western Cape is our most profitable region, and the US is our biggest and best trade market. Our produce is ready to export, the port is ready for the vessels, so this is not the setback that we need. As the organisation representing the export market, we will continue to lobby to government to forge speedily ahead with continued negotiations in the hope that the tariff can be overturned,” concludes Gale.

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