Compiled by Eamonn Ryan
In recent years, the demand for public cold storage facilities across sub-Saharan Africa has surged.
These vital infrastructures play a pivotal role in maintaining the quality and safety of perishable goods, from fresh produce to vaccines. As the continent grapples with food security challenges and strives to enhance healthcare delivery, public cold stores are emerging as game-changers.
Public cold stores are facilities that provide cold storage services to public companies which for reasons of convenience prefer not to have their own distribution centre.
In the cold chain, these facilities are used to store perishable goods such as fruits, vegetables, meat, seafood and dairy products, among others, at controlled temperatures to maintain their quality and freshness from production to consumption. Public cold stores are available for use by anyone who needs to store their products at a controlled temperature, including farmers, distributors, retailers and exporters.
They include freight consolidators, bulk breakers at Africa’s ports, as well as the major public stores that manage only pallets in and out. Some cover the entire value chain from farm to merchandising on supermarket shelves’ temperature, including farmers, distributors, retailers and exporters.
Growing interest in Africa
If the benefits of the African Continental Free Trade Agreement (AfCFTA) are to be realised, it is insufficient for South Africa alone to have a comprehensive cold chain – it needs to spread continent-wide. And that is happening – albeit slowly. In an article in this issue, we profile new facilities in Kenya which have increased the cold chain’s capacity in that country by 25%.
Last year too, additional facilities were opened at the Port of Maputo – primarily targeting South African citrus exports. The Port of Maputo has gained new fresh produce cargo handling capacity with the opening of two new cold storage facilities that were ready to service customers during the 2023 citrus export season.
The latest developments come after the port restarted the flow of South African citrus via the DP World Maputo terminal for export globally to the Middle East and India and the Far East in 2022. All the citrus exported via the Maputo fruit terminal originates in South Africa; there is a special arrangement for perishable products transported through the Komati border post into Mozambique.
It opened with initially 1 500-pallet capacity and it was planned to grow to 4 500-pallet capacity. The ZPI Cold Store is the second new Maputo facility located near Zimpeto. The cold storage facility has 1 344-pallet capacity and an ambient warehouse that can pack approximately 50 reefers per week. The opportunity to export citrus via Maputo has provided citrus growers with an alternative solution to moving their cargo through the congested Durban Port that is historically one of the main ports handling citrus exports for the region.
DP World will continue to invest in the port capacities to ensure volumes can grow unimpeded. Furthermore, DP World Maputo is undergoing a major expansion for Maputo where it will add 400m of deep-water quayside (16.5m draft) with new shore-to-shore quay cranes. This will be completed by the end of 2025.
DP World has invested in 440 reefer plugs in the terminal and has additional shipping line services to major markets with Unifeeder and ONE servicing the Middle East and India markets and CMA CGM, PIL, ONE, MSC and Maersk operating on the Far East route.
The South African citrus-growing region located just across the Mozambique border produces more than 50 000 FEUs (forty-foot equivalent units) over a six-month season. Since securing the concession to manage, develop and operate the container terminal, DP World made it clear that its ambition was to provide export and import solutions to be the hinterland’s gateway of choice for customers in Mozambique and neighbouring countries.
The interest in Africa in building temperature-controlled warehouses for horticultural needs is growing, as regularly referenced in various project articles by InspiraFarms in Cold Link Africa, including this issue. There are some special funding opportunities through the World Bank and developers are seeing this as an opportunity. As the density of cities grows and the traffic congestion increases, the move to more formal trading will increase and so will the requirement for cold chain infrastructure.
While some farmers are interested in exporting quality products, others want to reduce the waste and product loss, but overall, there is a big need for cold chain solutions. There is a future vision of Africa becoming the centre of agriculture – the tropical fruits are among the best quality in the world and of interest to many investors looking to establish cold chains to reduce the considerable loss of fresh fruit and vegetables. With more awareness and investment, the future looks promising in having more temperature-controlled facilities accommodating different products.
As for frozen food cold storage, the demand is stable for now but will be expected to increase as cold chains improve.
Key factors in designing public cold storage facilities
There are a number of essential considerations and challenges involved in designing and constructing these crucial storage spaces within the cold chain industry, explains John Ackermann, founding president of SARDA, as well as previous owner and current consulting editor of Cold Link Africa.
Unpacking the key factors to consider in the design and construction of public cold storage facilities, Ackermann emphasises the importance of adhering to technical requirements applicable to all cold storage facilities. In addition, he highlights the significance of accessibility. “In designing public cold stores, good access from all routes, including major highways and rail connections, is paramount. Clients come from diverse locations, so accessibility is crucial,” he says. Furthermore, Ackermann stressed the importance of adequate loading and receiving bays, as well as facilities for drivers such as restrooms and ablution facilities. These amenities are essential to accommodate drivers of clients who utilise the public cold storage facility.
Regarding inventory management and stock rotation, each facility typically employs its own unique management system as they cater to a diverse range of clients, and thus, inventory rotation strategies may vary depending on individual client needs.
“It’s important to understand that public cold stores serve various clients, each with distinct requirements,” explains Ackermann. “Inventory rotation and management strategies are tailored to meet the specific needs of each client.”
Ackermann also highlights the evolving nature of public cold storage facilities, noting that some now offer comprehensive value-add services beyond basic storage. These services may include logistics support, including stock rotation and dispatch services using the facility’s own vehicles. “This includes services such as cooling, packaging and logistics, all aimed at attracting more clients. As competition increases in the industry, public cold stores are compelled to diversify their services to remain competitive and capture market share – which in turn enhances competitiveness of the entire sector.”
Offering these additional services necessitates a close relationship with clients, a factor that distinguishes public cold storage facilities from ordinary distribution centres, explains Ackermann.
While dedicated DCs may segregate areas based on temperature and product types, public cold stores typically offer a range of temperature-controlled spaces capable of accommodating various products. “Public cold storage facilities generally handle a range of temperature-sensitive products within the same complex,” Ackermann notes.
Safety protocols and regulations for public cold storage facilities align with those of any other storage facility. “Differences between dedicated DCs and public cold storage facilities primarily revolve around the clientele served and the additional services offered,” says Ackermann.
Public cold stores are to be found in all major centres serving local distribution needs across various regions, while there is a higher concentration in Cape Town due to its status as a key port for exporting perishable goods.
“With a focus on accessibility, inventory management and evolving client needs, these facilities play a crucial role in maintaining the integrity of the cold chain and ensuring the efficient storage and distribution of temperature-sensitive goods.”
offering 16 000 pallets frozen and chilled
bulk storage, fine picking and secondary
distribution. Supplied by Commercial Cold Holdings
Cold Feet specialises in the export market
In an industry where adaptability is key, cold storage and frozen goods consolidator Cold Feet stands ready to embrace the future, one chilly shipment at a time.
Public cold stores vary in size, scope and specialisation, catering to the unique needs of different industries and products. From large-scale long-term storage facilities to specialised cold stores focused on specific product categories, the public cold store ecosystem offers a range of options for businesses seeking temperature-controlled storage solutions.
The role of public cold stores extends beyond mere storage; they serve as vital links in the cold chain, facilitating the movement of goods both locally and internationally. Cold Feet’s specialisation lies in the handling of dairy and seafood products, each subject to stringent veterinary requirements and export regulations. While larger cutting plants may have their own cold storage facilities, Cold Feet plays a crucial role in managing ancillary goods and facilitating the export process for these specialised products.
In the heart of the refrigeration sector lies the crucial role played by public cold stores, facilitating the storage and distribution of temperature-sensitive goods. Nic Thomson, a director of Cold Feet, sheds light on the sector.
The journey of Thomson and fellow director George Economou in the cold food distribution industry spans two decades, marked by adaptation to changing circumstances. “We started off as importers, utilising commercial cold storage facilities.” However, the onset of the Covid-19 pandemic necessitated a reimagining of their operations. In response, Cold Feet emerged as a freight consolidator, offering its own centralised hub for the storage and distribution of goods.
Thomson emphasises the importance of efficiency and reliability. “People can come in with a truck that’s going to go long distance, knowing it will be loaded within a certain timeframe. This commitment to timely service and accurate handling is paramount, ensuring seamless export processes for clients. Our customers expect meticulous attention to detail. From verifying product integrity to maintaining precise temperatures, we prioritise customer satisfaction above all else.”
Cold Feet operates with a dual focus – consolidating loads for export and distributing South African products to businesses across Africa. Thomson highlights the importance of trust within the industry to counter the frustration that arises when trucks face extended wait times at storage facilities. “Trucks spend an awful lot of time waiting to unload or load, due to the inefficiencies that can occur within some of the larger long-term storage businesses. Inaccuracies in loading and unloading processes further exacerbate these challenges, pointing to the need for precision and reliability.”
Cold Feet adopts a collaborative approach to paperwork and customs clearance. While they handle export-related documentation, including invoices and certificates of origin, the responsibility for border clearance lies with the customer or supplier. This division of tasks ensures seamless co-ordination and compliance with regulatory requirements.
While Cold Feet does have a small fleet of trucks, its focus remains on consolidation and distribution rather than direct transport. This strategic approach allows them to optimise their resources and expertise, delivering value-added services to their clients.
Thomson emphasises the importance of offering tailored services to meet the diverse needs of their clients. While bulk storage remains a common offering among public cold stores, Cold Feet stands out by providing specialised services such as fine picking and pallet consolidation. Their ability to actively mix and consolidate different pallets caters to clients with specific requirements for airfreight and distribution.
With a keen eye on growth, they continue to expand their client base while maintaining a high level of service excellence. Nonetheless, one of Cold Feet’s key differentiators is its commitment to maintaining a smaller personalised operation. Unlike larger storage facilities, which can sometimes face logistical challenges and delays, Cold Feet operates with an average of 10 clients at a time. “This approach allows us to offer personalised service and ensure efficient handling of goods, minimising wait times and maximising client satisfaction.”
“When it comes to competitors, we’re operating in a space dominated by big corporate players like Vector Logistics, CCH Logistics, Chilleweni, Imperial and RCL. Our focus lies in maintaining the integrity of temperature-sensitive goods, be it chilled or frozen. We handle everything from standard refrigeration to specialised requirements, such as transporting ice cream that demands precise temperature control.”
Cold Feet highlights the shift towards more energy-efficient systems. “Inverter-type systems are gaining traction for their superior energy efficiency compared to traditional compressors. Moreover, there’s a noticeable trend towards utilising environmentally friendly refrigerants like Freon, signaling a shift away from older technologies like liquid ammonia.”
“These days, refrigerant technicians are in high demand. The technical expertise required is immense, and the barriers to entry are significant, particularly for small players in the market.”
The two partners built the business from scratch with their own funding – which was substantial. Thomson notes that obtaining funding remains a formidable obstacle for many aspiring businesses, especially given the stringent requirements imposed by financial institutions.
Furthermore, navigating regulatory frameworks also poses a significant challenge for Cold Feet. “Compliance with regulations such as PPCP (Perishable Produce Controllable Protocol) and others is imperative. These regulations govern various aspects of our operations, from handling perishable goods to exporting meat products.”
Then there are everyday challenges ranging from staffing issues to unreliable electricity supply. “Staffing and electricity supply are perennial challenges. Loadshedding and cable theft exacerbate our reliance on diesel generators, driving up operational costs.”
As Cold Feet charts its course for the future, the company envisions significant growth opportunities within the African continent. With a focus on food distribution from South Africa into southern Africa, Cold Feet anticipates a surge in demand driven by population growth and increased market sophistication.
“In the next 10–15 years, we foresee a substantial expansion in food distribution across the region. South Africa’s strategic positioning as a key supplier to southern Africa positions us well to capitalise on this growth.”
Highlighting the potential in sectors such as mining and industry, Thomson emphasises the untapped opportunities awaiting investigation. “Countries like the Congo offer immense potential for growth, particularly in sectors like mine services where demand for goods and services is high,” noted the spokesperson.
While acknowledging improvements on the South African side of borders, particularly with electronic systems streamlining processes, Thomson says that challenges persist on the other side of these borders, as well as in the broader African landscape. “Border inefficiencies remain a concern, with issues ranging from lengthy queues to bureaucratic hurdles. Truckers often find themselves entangled in administrative delays, hindering smooth operations.”
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