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South Africa: $56mln loss from Cape Town port delays hits apple and pear exporters
South Africa: $56mln loss from Cape Town port delays hits apple and pear exporters

Zawya

time2 days ago

  • Business
  • Zawya

South Africa: $56mln loss from Cape Town port delays hits apple and pear exporters

Inefficiencies at the port of Cape Town have cost South Africa's apple and pear export industry an estimated R1 billion in 2024, industry leaders say. They warn that without urgent interventions — including the fast-tracking of the port's privatisation — the country could lose ground in key international markets. The Western Cape Department of Mobility met on Monday, 11 August, with Two-a-Day, one of South Africa's largest apple and pear packing and marketing cooperatives, and logistics partner Link Supply Chain Management for a strategic discussion and site visit. '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 Roelf Pienaar, managing director of Tru-Cape Fruit Marketing. '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." High costs and diverted shipments Two-a-Day operations director Chris Petzer said delays have at times forced shipments to be rerouted to Port Elizabeth at significant cost. 'It's not sustainable, but sometimes it's the only option to prevent greater losses,' he said. Link Supply Chain Management managing director Chris Knoetze said that while there has been some improvement in crane productivity, it remains well below optimal levels. "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," Knoetze said. He added: "When port operations are disrupted, it impacts product quality, increases costs, and damages our credibility with overseas buyers." Knoetze estimated that the inefficiencies have cost the industry R1bn through additional storage, trucking, and plug-in costs, as well as missed market opportunities. 'We urgently need to fast-track the privatisation of the Cape Town terminal to restore competitiveness." Government's response Western Cape Department of Mobility deputy director-general Corrine Gallant said measures are being taken to address both "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 in the chain — our focus is on solutions that remove bottlenecks and protect jobs," she said. Western Cape Mobility Minister Isaac Sileku emphasised the need for speed: "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." Next steps Stakeholders agreed 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 both immediate and systemic challenges. The Western Cape apple and pear industry is a major employer and contributor to the provincial economy. Industry leaders warn that improving the port's efficiency is critical to sustaining jobs and protecting South Africa's standing in global fruit markets. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (

Napier Port reports strong third-quarter revenue growth
Napier Port reports strong third-quarter revenue growth

RNZ News

time5 days ago

  • Business
  • RNZ News

Napier Port reports strong third-quarter revenue growth

A container ship at Napier Port. Photo: Supplied / Napier Port Napier Port has seen strong third-quarter revenue growth, underpinned by an increase in container volumes, improved margins and cost control. Revenue for the three months ended June rose 16 percent to $42.5 million from $36.5m the year earlier, with container volumes up 13 percent and bulk cargo up 2 percent. Napier Port expected to make a full-year underlying profit of at the top end of between $59m and $63m for the year ending in September. Revenue for the nine-month period was up nearly 13 percent to $121m, despite a 9 percent drop in cruise-season revenue. Container volumes over the nine-month period were supported by higher apple exports, general cargo imports, and empty containers to support export cargo. Chief executive Todd Dawson said growing conditions were positive with an early apple picking season delivering strong refrigerated container volumes, while changes to shipping line services resulted in higher fees. The cruise season ended in May with 78 vessel calls and more than 108,000 passengers, though revenue fell nearly 9 percent to $8.3m, with 89 vessel calls the year earlier contributing $9.1m to revenue. The port said it had just 61 cruise vessel bookings for the upcoming 2026 season . "As outlined at the half-year, we will be increasing capital investment in the near term linked to our investment programme focused on infrastructure and capability enhancement, and asset renewal and replacement," Dawson said. Napier Port's investment over the nine-month period was $19.1m, including payments on the dredge vessel build, the container terminal transformation project, mobile plant replacement and major maintenance, and site asset management works. Napier Port was expecting to invest about $120m million over the 2025 to 2027 financial years, including about $30m in the current financial year ending in September. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

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