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South African fruit exports delayed at Cape Town port

Fruit exports valued at about R1 billion, approximately US$55 million, are currently delayed at South African ports, mainly at the Port of Cape Town, due to a build-up of containers. The backlog has affected the movement of fresh fruit shipments and delayed export schedules.

According to Transnet Port Terminals, the disruption began in November and was primarily linked to weather conditions. Jabu Mdaki, CEO of Transnet Port Terminals, said: "At times we were seeing wind speeds of 120km an hour at the Port of Cape Town, which made it impossible to operate." He added that although new Rubber-Tyred Gantry cranes introduced last year can operate in wind speeds of up to 90km per hour, conditions frequently exceeded that threshold.

Operational data show that 379 hours were lost to high winds in November, followed by a further 331 hours in December. These stoppages limited vessel handling and container movement, contributing to the congestion. Mdaki said this placed operations under pressure despite prior preparations with the fruit export sector for the season.

In addition to weather-related challenges, Transnet Port Terminals acknowledged internal constraints. Mdaki noted that older ship-to-shore cranes remain in use on the waterside, leading to equipment breakdowns that affect productivity. Personnel-related issues in December also reduced operational capacity, although Transnet said these matters have since been addressed.

"To ensure that we improve the situation within the Port of Cape Town," Mdaki said, Transnet has been engaging regularly with industry stakeholders and outlining recovery plans. A dedicated recovery project has been established, led by Earle Peters, who previously oversaw congestion recovery efforts in Durban in 2023. The appointment is intended to support performance recovery during a leadership transition at the Cape Town terminal.

As part of contingency planning, fruit volumes were redirected to Eastern Cape facilities, including the Ngqura Container Terminal and the Port Elizabeth Container Terminal. Mdaki said: "They have done a phenomenal job handling the volumes that have been redirected to the Eastern Cape." He acknowledged that this involved additional transport costs for exporters, but said redirected volumes were handled as planned.

Transnet Port Terminals reported that vessel diversions away from Cape Town have since declined. Mdaki said vessels are now returning to the Cape Town Container Terminal and operations are showing gradual improvement. He added that shipping lines have responded by reducing diversions, with the aim of restoring normal export flows through Cape Town.

Transnet said its focus remains on clearing the existing backlog and stabilising export operations as the peak fruit export season continues.

Source: Moneyweb

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