Spatial economic analysis of the port of Cape Town and its environs

Abstract

The spatial and temporal features of maritime services and their associated logistics functions, particularly in emerging markets like South Africa, remain poorly understood. The study responds to the research gap in understanding the ever-changing economic activity near the port and port-city interface. This thesis utilised a single-case study approach to explain the economic activity of logistics companies in the vicinity of the Port of Cape Town, in the case study of Paarden Eiland using quantitative and qualitative data collection and analysis methods. The study consisted of three research questions. To answer the first research question, the study analysed the mix of logistics firms; identifying the typologies and quantities of businesses located in Paarden Eiland. To address the second research question, the study completed a spatial distribution geographic representation of logistics firms. To answer the third research question, content analysis was conducted to determine the role of land use and planning and regulatory frameworks affecting Paarden Eiland. The findings of the study reveal that distributor and supplier firms are dominant owed to their global relevance containerisation while last-mile couriers are less dominant owed to the shifts in logistics supply chains related to e-commerce-related shifts. The study findings show that there are third-party logistics providers (3PL) and fourth-party logistics service provider (4PL) firms. The study also highlights the importance of land-use planning and regulatory frameworks fostered through land-use zoning, Spatial Development Frameworks (SDF), City Improvement Districts (CID), and Special Rates Areas (SRA) in creating a conducive environment for logistics operations on the Table Bay’s District’s portion of Paarden Eiland. The findings will add value to theoretical advancements in port-city relations and provide practical insights for effective land-use planning and policy formulation for Paarden Eiland through district spatial development frameworks in Table Bay District and Blaauwberg District in the City of Cape Town Municipality. The research concludes that the strategic geographic concentration of logistics firms in Paarden Eiland enhances operational efficiencies through shared resources and proximity to the Port of Cape Town, highlighting the importance of agglomeration economies. The study shows the role of land-use planning and regulatory frameworks, such as City Improvement Districts, in facilitating a conducive environment for logistics operations and this can be improved by adding port-centric logistics clusters purposefully. The study recommends adaptive approaches that consider the impact of the growth and transformation of logistics and supply chain management and the operational strategies of logistics firms through effective land-use planning and port development to improve the collaboration between port-centric cluster development and urban and regional planning in the City of Cape Town.