Ports strike will be major setback for WC economy | Western Cape Government


Ports strike will be major setback for WC economy

12 October 2022

Joint media release: Ports strike will be a major setback to Western Cape’s economic recovery.

This morning the Western Cape Cabinet met and was briefed by Provincial Finance and Economic Opportunities Minister Mireille Wenger on the ongoing Transnet strike.

Minister Wenger outlined the impact of the strike, particularly on the Port of Cape Town. While marine services are functional, operations, especially at the container terminals, are limited.

Premier Alan Winde lamented the situation: “This industrial action comes at a critical time. We are particularly concerned over yet another setback to our economy, which is still emerging from COVID-19 and continuously grappling with the energy crisis. We have to double down on growing our economy and this strike is proving to be a major impediment.”

Premier Winde added our economy cannot take another hit like a strike. It is estimated that the strike is costing South Africa’s economy R1billion per day.

Minister Wenger reiterated: “In the end, it is our citizens who will suffer the consequences of a disruptive strike, especially the thousands of residents employed in our agriculture sector and other export sectors, by our importers and by the logistics associated with this.”

The strike poses a risk to the Western Cape’s agricultural sector, which is highly export driven. The economy cannot afford these types of disruptions, which will inevitably filter down to the individual consumer.

In 2021, the Western Cape exported 90% of its primary agricultural products via the seaport, 6% via air transport, 3% via land border ports and 1% via inland ports.

The Western Cape Government (WCG) has offered support to Transnet in implementing its Business Continuity Plan (BCP) processes.

The Premier and Minister Wenger have appealed to all parties to negotiate in good faith, always keeping in mind the common goal we all share: to grow the economy, create jobs and re-instill hope in our province and country.