Logistics outlook for new season

By Jacques du Preez

Although we believe we have reached a turning point, specifically in the Port of Cape Town, regarding the logistical crisis, we foresee another challenging season from a logistical point of view. Therefore, growers, exporters, and logistical service providers will once again have to make use of alternative modes of shipping to alleviate the pressure on the Container Terminal, ensuring that fruit is shipped promptly for the servicing of clients, meeting programme deadlines, and ensuring fruit quality upon arrival.

Growers have suffered financially over the past two years, largely due to conditions beyond their direct control, with many, unfortunately, going out of business because of the financial impact of logistical problems. However, there is a light at the end of the tunnel, though it will take 8-12 months for the plans and actions already undertaken by Transnet to filter down to ground and orchard level. As such, alternative shipping methods, such as using Specialised Reefer Vessels and other ports, will again need to be utilised from December 2024 to April 2025. These options come with added costs but, unfortunately, will have to form part of the strategy to mitigate risk. The additional costs must be weighed against the inability to get fruit to the markets and the potential for quality claims.

Old equipment and breakdowns remain one of the biggest constraints. However, orders have been placed to replace crucial equipment with new fleets and for the long-overdue refurbishment of the Shore to Ship (STS) cranes. The timeline mentioned above regarding the impact is based on the following:

• The hauler fleet of 47 has been replaced with new ones.
• 9 New Rubber Tyre Gantries (RTGs) will be delivered by the end of February 2025.
• 9 New RTGs are to be delivered in August 2025.
• 10 New RTGs are to be delivered in August 2025.

Thus, the entire RTG fleet will be replaced by August 2025. Although this is a welcome relief, it will unfortunately not have an impact on the coming stone fruit and early pome fruit season. The current fleet of RTGs has been bolstered, but they still experience regular breakdowns. The other fleet of critical machinery is the STS cranes, with their mid-life refurbishment programme commencing in mid-2025 and continuing into 2026.

There is light at the end of the tunnel, but it will take time for these interventions to result in improved productivity. The wind will blow again, resulting in delays, although none of us can predict when or how severe these will be. Implementing recovery plans will be crucial, and early planning and commitment from all the fruit industries using the port during the coming months and into next year will be essential.

As collective fruit industries, we continue to work closely with the management of the Cape Town Port and we will do everything within our power to ensure as smooth logistical operations as possible. However, we should plan for challenges in the short term before the situation starts improving in mid-2025. The state of the Durban port is also a great concern as it directly impacts vessel calls at the Port of Cape Town.