South Africa’s citrus industry is a crucial part of our country’s agricultural exports, accounting for more than 50% of overall agricultural exports and contributing R43bn annually to GDP.
As the key facilitator of the sector’s imports and exports, Transnet is an essential partner in ensuring that fresh produce reaches key markets on time. With the industry forecasting a 15% increase in citrus export volumes in 2024, Transnet Port Terminals (TPT) has taken special measures to ensure that this year’s “reefer season” is a success.
Four key port facilities are responsible for citrus exports: Durban Container Terminals, Gqeberha Container Terminal and Ngqura Container Terminal, for “reefer season” itself (April to October), with Cape Town Container Terminal kicking off in November and ending in April.
It’s a complex exercise, involving the movement of fresh citrus fruit in refrigerated containers to more than 100 countries, mainly in the EU, Russia, the US and Mediterranean countries. Citrus makes up over 50% of all fruits grown in South Africa, with the country ranking as one of the top three global citrus suppliers. The Netherlands, China, the UK, Russia and the United Arab Emirates are the largest consumers of the country’s exports.
Our plans to improve operational efficiencies are based on a strategy that integrates all stakeholders — from cargo owners to suppliers, shipping lines and customs to ensure maximum efficiency and minimum cost to customers.
For the 2024 reefer season, an additional 200 cargo co-ordinators and port workers have been employed and increased mechanical capacity has been put in place at container terminals to cope with the demand and ensure that fruit is able to reach export markets on time.
A 24-hour maintenance regime is in place to secure the availability and reliability of existing equipment. Furthermore, original equipment manufacturers provide technical support and supply critical spares across all terminals, to ensure the reliability of the current facilities. Underlining collaboration with key stakeholders, TPT has entered into contractual agreements for the acquisition of spares and components with original parts manufacturers for key equipment to streamline the procurement of spares.
The agreements reduce waiting times for critical spares of handling equipment such as straddle carriers, ship-to-shore, and rubber-tyred gantry cranes, enabling TPT to provide predictable, reliable and efficient terminal handling services.
Alongside this, TPT is on a broad equipment acquisition drive, with capital investment estimated at R3,9bn in the current financial year.
We are excited that the citrus season got off to a strong start, as the first of the citrus season’s longest trains recently arrived at the Durban Container Terminal Pier 2 from Limpopo (the largest contributor to South Africa’s citrus industry) with 48 40-foot containers of export citrus fruit ready for loading aboard calling vessels.
To support increased volumes and improve customer service, all TPT’s container terminals across KwaZulu-Natal and the Eastern Cape have dedicated lanes for refrigerated containers at the gates. We are also increasing the number of truck appointment slots based on demand and capacity during this season.
Some terminals are receiving new haulers, trailers, reach stackers and empty container handlers that will enhance landside operations. Additional capacity has also been created at each terminal to improve the fast turnaround of empty containers, with the stacking of containers up to six feet high. In addition, the evacuation of import containers averaging 35 wagons daily via rail to back-of-port facilities will remain in place to enable fluidity on the landside handling.
Communication with customers has been a vital element of this gearing-up, to ensure everyone involved plays a role in promoting the growth of South African imports and exports. This has included identifying equipment available globally for purchase, urgent movement of equipment across the water, and terminal partnership programmes that promote world-class planning and execution.
TPT is also engaging depots and cold stores to ensure better planning and alignment.
All this is taking place within the framework of Transnet’s business-wide recovery plan, which aims to boost efficiencies across the business.
For TPT, the impact that the recovery plan has already resulted in an increase in year-on-year container volumes of 10% in the first six weeks of the 2024/2025 financial year.
Our plans are taking off as we implement a strategy that integrates all stakeholders — from cargo owners to suppliers, shipping lines and customs with the aim of delivering an efficient cargo system.
The role of shipping and logistics as a driver of socioeconomic development cannot be overemphasised, placing us in a position to grow our share of the market. As Transnet we are ensuring we have the correct people at the correct level with the correct amount of resources; and the discipline to run a complex logistical operation without interference — all geared towards ensuring a successful reefer season in 2024.
• Mdaki is CEO of Transnet Port Terminals
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