While it is clear that privatisation is the only solution to the challenges in the Cape Town port, Tru-Cape Fruit Marketing has welcomed steps taken by the Western Cape Government to mitigate risks for the current fruit harvesting season.
“I am positive about the future of our industry. There is a new generation of producers with energy, passion and the mindset to overcome challenges, but the one thing that we cannot fix ourselves is the port,” said Calla du Toit, pome fruit producer from Ceres and procurement manager at Tru-Cape Fruit Marketing.
Stakeholders from Tru-Cape, Ceres Fruit Growers, Two-a-Day Group, Dutoit Agri and Link Supply Management recently met with Alan Winde, premier of the Western Cape, Mireille Wenger, Western Cape provincial minister of finance and economic opportunities, and other government officials. They discussed the road forward for Cape Town’s port, which was recently ranked 344th out of 348 ports in the Container Port Performance Index.
Chris Knoetze, managing director from Link Supply Chain Management, pointed out the inefficiency of the port of Cape Town is costing the economy billions yearly. “There is no investment in infrastructure. There are no rubber tyred gantry cranes (RTG’s), straddle carriers, terminal trucks and chassis on the ground to move the containers and get a flow of the containers into the vessels and get it loaded from the vessels. Research shows global rates reduced world wide by 30% since 2021, but South Africa did not see the same sharp reduction in ocean freight rates. Our competitors benefit from these lower rates, reducing our global competitiveness.”
Minister Wenger said she recently reported the port of Cape Town to the Port Regulator of South Africa, as she believes the regulator has a role to play in the efficiency of ports.
Glen Steyn, economist tasked with the ease of doing business for the port of Cape Town, called for the acceleration of pressure on private sector participation. “We developed a framework which was given to the National Finance Minister. Identifying the right partner for the particular situation in Cape Town, is critical. Cape Town is a cool port and we need to focus on the cold chain and refrigerated containers. We have to select our private sector partner accordingly.”
Min. Wenger mentioned that her department successfully argued for an agriculture leg of the National Crisis Committee on Logistics. According to Steyn this will be crucial for selecting the right private sector partner. “We also got a commitment for seven new RTG’s, which should be in the terminal during the first week of December.”
Premier Winde commended the agricultural sector for the growth and investment that still takes place, despite massive uncertainty. “If you unblock the blockage (in the port), it probable means thousands of jobs in the whole value chain. We have to get the narrative right.”
For more information:
Lucille Botha
Tru-Cape
Email: [email protected]
www.tru-cape.com