Professor Johann Kirsten on 28 May facilitated a Creamer Media panel discussion featuring insights from:
- Jabu Mdaki, chief executive of Transnet Port Terminals
- Mmatiou Kalaba, executive director and senior analyst at the Bureau for Food and Agricultural Policy (BFAP)
- Boitshoko Ntshabele, chief executive officer at Citrus Growers Association of Southern Africa; and
- Wandile Sihlobo, chief economist of the Agricultural Business Chamber of South Africa (Agbiz)
This is Part 3 of an eight-part series.
The European Union’s stringent sanitary and phytosanitary (SPS) measures, such as those related to False Codling Moth (FCM) and citrus black spot, continue to pose significant challenges for South African citrus. Ntshabele revealed the immense cost of compliance and waste associated with these regulations, estimated at an annual R3.7 billion. Resolving this issue through the World Trade Organization’s dispute settlement process is a priority to bolster the profitability of citrus growers. The implications for the cold chain are substantial, as precise temperature and pest control measures are embedded in these regulations, adding layers of complexity and cost to exports.
Ntshabele expressed an optimistic outlook on export terminals, noting that recent Transnet investments and operational improvements have led to constructive discussions and noticeable progress. He reported that Transnet has increased personnel, delivered additional equipment and is undertaking upgrades, resulting in swift dispatch of fruit from ports. This improved efficiency directly enhances cold chain integrity and speed by reducing dwell times and potential quality degradation for perishable exports.
Mdaki of Transnet Port Terminals detailed significant advancements in upgrading terminal infrastructure and operations. Key investments include new, technologically advanced RTGs, straddle carriers and ship-to-shore cranes at major ports like Durban and Cape Town. These new cranes feature anti-sway technology, allowing operations at higher wind speeds (up to 90 km/h), reducing downtime and ensuring a more consistent flow of goods, including those requiring cold chain management.
Transnet is also focusing on its human element, as Mdaki stated. The introduction of productivity-aligned incentives has significantly improved staff morale and will continue. Additionally, substantial improvements in network systems have reduced debilitating outages, which previously hampered terminal operations.
Mdaki highlighted strong private sector interest in Public-Private Partnerships (PSPs) at export terminals, in response to the Minister’s Request for Information (RFI). He noted significant enthusiasm for partnering in initiatives aimed at rapidly transforming terminals into world-class operations. These partnerships are crucial for boosting port capacity and efficiency, thereby supporting the growing agricultural export sector and its vital cold chain.
A key development for operational turnaround was the establishment of the National Logistics Crisis Committee (NLCC). This committee fostered unprecedented collaboration, with industry leaders, including those from organisations like SAF, now directly involved in problem-solving committees. Mdaki emphasised that this direct, hands-on engagement has replaced a more adversarial dynamic, leading to open communication and a shared commitment to resolving challenges.