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IOL News
19 hours ago
- Business
- IOL News
Urgent call for privatisation of Cape Town port to save fruit export industry
The Western Cape's apple and pear industry is calling for the urgent privatisation of the Port of Cape Town. Image: Unsplash The Western Cape's apple and pear export industry is facing significant challenges, estimating losses of R1 billion in 2024 due to logistical delays at the Port of Cape Town. Industry leaders are calling for the urgent privatisation of the port to prevent further losses and maintain South Africa's competitiveness in global markets. This urgent request was made during a meeting with the Western Cape Department of Mobility and key industry stakeholders, underscoring the critical importance of timely fruit exports. Roelf Pienaar, managing director of Tru-Cape Fruit Marketing, articulated the challenge. 'We work in a complex, time-sensitive value chain. If a vessel to Europe, the United Kingdom, or the Far East is missed, the sale is gone. You don't get a second chance to deliver on time in a programme-driven market,' said Pienaar. Pienaar added that the situation poses an existential threat to the industry. 'Logistics is the single biggest risk for us right now. If we can't get our product out, everything else, from on-farm innovation to market development, is compromised.' To mitigate delays, Chris Petzer, Two-a-Day's operations director, explained that containers are often diverted to Port Elizabeth, a costly measure taken to avoid halting on-farm harvesting and packing. 'It's not sustainable, but sometimes it's the only option to prevent greater losses,' he said. Chris Knoetze, managing director of Link Supply Chain Management, a logistics provider for several leading fruit exporters, noted that while some interventions have improved crane productivity, the pace of change remains too slow. The ongoing inefficiencies, he stressed, have had a direct financial impact and have damaged the industry's reputation. 'When port operations are disrupted, it impacts product quality, increases costs, and damages our credibility with overseas buyers,' Knoetze said, before making a direct call to action. 'We urgently need to fast-track the privatisation of the Cape Town terminal to restore competitiveness.' In response, the Western Cape Department of Mobility, represented by Corrine Gallant, deputy director-general, confirmed that measures are being taken to address both landside and waterside inefficiencies. 'We are working on both the landside and waterside inefficiencies,' Gallant said. 'We cannot afford more costs in the chain, our focus is on solutions that remove bottlenecks and protect jobs.' However, industry representatives warned that time is running out. Gerhard van Heerden, also a director at Link Supply Chain Management, stressed the need for urgency from the port itself. 'The farmers, pack-houses, and exporters are investing in efficiency every day,' he said. This sentiment was echoed by Isaac Sileku, Western Cape Minister of Mobility, who emphasised the need for structured collaboration and swift execution to prevent further delays. 'We cannot afford to be reactive. We must have formal agreements and mechanisms in place so that when bottlenecks arise, we know exactly which button to press. Speed of execution is critical, our farmers and exporters cannot wait years for solutions,' Sileku said. Get your news on the go, click here to join the Cape Argus News WhatsApp channel. Cape Argus
IOL News
2 days ago
- Business
- IOL News
R1 billion lost: Cape Town port delays jeopardise apple and pear exports
The Western Cape's apple and pear industry is calling for the urgent privatisation of the Port of Cape Town, citing estimated losses of R1 billion in 2024 due to logistical inefficiencies and delays. Image: iStock The Western Cape's apple and pear export industry is sounding the alarm after estimating that logistical bottlenecks and delays at the Port of Cape Town have cost the sector approximately R1 billion in 2024 alone. Industry leaders are now calling for the urgent fast-tracking of the port's privatisation to prevent further losses and protect South Africa's market share in key global markets. The urgent plea was made during a strategic discussion and site visit yesterday between the Western Cape Department of Mobility and key industry players, including Two-a-Day and its logistics partner, Link Supply Chain Management. The meeting highlighted the critical, time-sensitive nature of fruit exports. Roelf Pienaar, managing director of Tru-Cape Fruit Marketing, articulated the challenge. 'We work in a complex, time-sensitive value chain. If a vessel to Europe, the United Kingdom, or the Far East is missed, the sale is gone. You don't get a second chance to deliver on time in a programme-driven market,' said Pienaar. Pienaar added that the situation poses an existential threat to the industry. 'Logistics is the single biggest risk for us right now. If we can't get our product out, everything else, from on-farm innovation to market development, is compromised.' To mitigate delays, Chris Petzer, Two-a-Day's operations director, explained that containers are often diverted to Port Elizabeth, a costly measure taken to avoid halting on-farm harvesting and packing. 'It's not sustainable, but sometimes it's the only option to prevent greater losses,' he said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Chris Knoetze, managing director of Link Supply Chain Management, a logistics provider for several leading fruit exporters, noted that while some interventions have improved crane productivity, the pace of change remains too slow. The ongoing inefficiencies, he stressed, have had a direct financial impact and have damaged the industry's reputation. 'When port operations are disrupted, it impacts product quality, increases costs, and damages our credibility with overseas buyers,' Knoetze said, before making a direct call to action. 'We urgently need to fast-track the privatisation of the Cape Town terminal to restore competitiveness.' In response, the Western Cape Department of Mobility, represented by Corrine Gallant, deputy director-general, confirmed that measures are being taken to address both landside and waterside inefficiencies. 'We are working on both the landside and waterside inefficiencies,' Gallant said. 'We cannot afford more costs in the chain, our focus is on solutions that remove bottlenecks and protect jobs.' However, industry representatives warned that time is running out. Gerhard van Heerden, also a director at Link Supply Chain Management, stressed the need for urgency from the port itself. 'The farmers, pack-houses, and exporters are investing in efficiency every day,' he said. 'Now we need the same urgency and commitment at the port, because without it, the entire value chain is at risk.' This sentiment was echoed by Isaac Sileku, Western Cape Minister of Mobility, who emphasised the need for structured collaboration and swift execution to prevent further delays. 'We cannot afford to be reactive. We must have formal agreements and mechanisms in place so that when bottlenecks arise, we know exactly which button to press. Speed of execution is critical, our farmers and exporters cannot wait years for solutions,' Sileku said.
The Citizen
2 days ago
- Business
- The Citizen
Apple and pear exports lost R1 billion in 2024 due to Cape Town port inefficiencies
It is not only US tariffs that keep farmers and export agents up at night. The state of the Cape Town port also has them counting apples. South Africa's apple and pear export industry is calling for Transnet to act due to the mounting losses caused by inefficiencies at the port of Cape Town, estimating that delays and logistical bottlenecks have cost the sector around R1 billion in 2024 alone. The Western Cape department of mobility met with Two-a-Day, an apple and pear packing and marketing cooperative, and its logistics partner, Link Supply Chain Management, on Monday for a strategic discussion and site visit to tackle the logistic challenges affecting the fruit export industry. At the meeting, industry role players warned that without urgent intervention, including the fast-tracking of the port's privatisation, the country risks losing hard-won market share in key global markets. 'We work in a complex, time-sensitive value chain. If a vessel to Europe, the United Kingdom, or the Far East is missed, the sale is gone. You do not get a second chance to deliver on time in a programme-driven market. Logistics is the single biggest risk for us right now. 'If we cannot get our product out, everything else, from on-farm innovation to market development, is compromised,' Roelf Pienaar, managing director of Tru-Cape Fruit Marketing, says. ALSO READ: Cape Town port ranked the worst in the world Delays at Cape Town port force diversions to Port Elizabeth, costing money Chris Petzer, operations director at Two-a-Day, explains that port delays often force the business to divert containers to Port Elizabeth at significant cost, simply to keep the supply chain moving and avoid halting harvest and packing operations. 'It is not sustainable, but sometimes it is the only option to prevent greater losses.' Although the Cape Town port's efficiency is slightly improving, according to Chris Knoetze, managing director of Link Supply Chain Management, a fourth-party logistics provider owned by several of the Western Cape's leading fruit exporting companies, including Two-a-Day and Tru-Cape Fruit Marketing, it is still throttling exports. A more effective port with higher productivity will attract more vessels and services, expand capacity and give more reliable shipping options to various export markets. 'Given several interventions, like Transnet's appointment and changes at senior management level, the repair and maintenance of equipment, solving personnel matters, focusing on operational improvement and capital investment in new rubber tyre gantry cranes (RTGs) in Cape Town Container Terminal, we should expect to see a step change in productivity to at least twenty gross crane movements per hour (GCH) or more in the coming months. 'However, the process is still too slow and far removed from the 33 GCH reported by Transnet in November 2012. When port operations are disrupted, it affects product quality, increases costs and damages our credibility with overseas buyers.' ALSO READ: Where are the private sector plans for Cape Town port? Inefficiencies cost apple and pear industry R1 billion in 2024 Knoetze emphasises that inefficiencies have cost the apple and pear industry in the Western Cape an estimated R1 billion in 2024 due to additional storage, trucking and plug-in costs, as well as missed market opportunities when vessels bypass Cape Town. 'We urgently need to fast-track the privatisation of the Cape Town terminal to restore competitiveness.' The Department of Mobility confirmed that it is actively pursuing measures to tackle these constraints. Corrine Gallant, deputy director-general of the Western Cape's mobility department, outlined existing initiatives, including the port of Cape Town's Logistics Development Project Management Unit and plans to revitalise rail infrastructure. 'We are working on the landside and waterside inefficiencies. This includes improving road freight safety and capacity, restoring rail services like the Overberg line and ensuring that the Western Cape's needs are heard at a national level. 'We cannot afford more costs down the chain. Our focus is on solutions that remove bottlenecks and protect jobs.' ALSO READ: US tariffs: SA sends new proposal but no changes to laws Global shipping bypasses port due to inefficiencies Industry representatives stressed that time is critical and warned that delays in decision-making could see global shipping lines bypass Cape Town in favour of more efficient ports, delaying fruit by one to two weeks and undermining the Western Cape's competitiveness. 'The farmers, pack-houses and exporters are investing in efficiency every day. Now we need the same urgency and commitment at the port, as without it, the entire value chain is at risk,' Gerhard van Heerden, director at Link Supply Chain Management, warns. Isaac Sileku, Western Cape minister of mobility, echoed this and emphasised the need for urgency and structured collaboration with Transnet. 'We cannot afford to be reactive. We must have formal agreements and mechanisms in place so that when bottlenecks arise, we know exactly which button to press. Speed of execution is critical — our farmers and exporters cannot wait years for solutions.' The session concluded with agreement on the need for: Faster execution of port and rail improvement projects. Formal industry-government forums with direct access to decision-makers. Targeted short-, medium- and long-term actions to resolve 'low-hanging fruit' issues and systemic challenges. The Western Cape apple and pear industry contributes significantly to local employment and the provincial economy and stakeholders agreed that improving Cape Town's port efficiency is essential not only for sustaining the sector but also for enhancing South Africa's competitiveness in global fruit markets.
