The organised fruit industry of South Africa has set out its intention to take legal action against the state-run ports authority Transnet in a recent communiqué.
"Cape Town is not the only port in the world facing wind challenges," the document reads. "Experts from outside ought to be involved. Industry has offered to assist financially to bring in foreign expertise, but the assistance has not been accepted."
Therefore, it reads, Hortgro and other industry bodies are considering instituting legal action seeking compensation from Transnet, given that the ports authority is directly implicated in repeated losses of revenue.
Damage claims on a vessel-by-vessel case could follow "fairly quickly", the communiqué reads, "but a possible class action suit will be complex, lengthy and expensive given that the 'industry' itself doesn't own product and that producers hold their service providers (exporters, logistics companies and shipping lines) accountable, and they in turn hold Transnet accountable."
The process is supported by agricultural business chamber Agbiz and Sakeliga; the latter has built its reputation on forcing the state’s hand on service delivery in various spheres through litigation.
“We believe that as an industry we have done everything we could to assist and support Transnet with accurate fruit flow projections and optimisation of the container flow into the port, but that we have yet again been let down. This despite repeated efforts, also with a visit mid-December by [Minister for Public Enterprises] Pravin Gordhan to sensitise management and labour as to the needs of our industry and the complexities surrounding the peak season."
The Fresh Produce Exporters' Forum and Fruit South Africa have not released any formal communication on this matter.
Vessels berthing at the Cape Town Container Terminal
The three avenues reportedly to be explored are reparation for damages as a result of delays on a vessel-by-vessel basis; as a result of non-performance by Transnet personnel as well as possibly referring the state-owned ports authority to the Competition Commission.
Industry would very much like to see privatisation of operations at all of South Africa’s ports.
Shortage of trucks between Cape Town and Gqeberha
A war room comprising the fruit industry, shipping lines and Transnet has been meeting daily to assess the port situation which is universally declared “a total mess”, particularly since mid-December 2023.
Table grape and stonefruit exports have been loading on breakbulk vessels in Cape Town, at the privately-run terminal FPT and they have been trucking their fruit to Gqeberha (Port Elizabeth) – but there is a shortage of reefer trucks on that route (on which trucks often have to return without cargo), further inflating transport costs.
“Last week we even sent a container of stonefruit meant for Europe to Durban! A few years everyone would've thought you’re crazy to truck fruit for Europe through to Durban, but that’s where we are now,” says a Western Cape exporter.