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 4 of an eight-part series.
Government support, through the relaxation of certain procurement rules and regulations, has been instrumental in improving operations. Mdaki acknowledged that while challenges persist, these changes have significantly helped. Lengthy procurement processes have been transformed into “revenue generation processes,” drastically shortening turnaround times for acquiring spares and service providers.
The efforts have yielded tangible results in improved port performance metrics. Mdaki shared that the Minister’s objective is for container terminals to achieve a Gross Crane Hour (GCH) of 30 moves per hour. Starting from a low base of 11 GCH in Cape Town, none of Transnet’s terminals are now below 15 GCH, with Cape Town at a comfortable 17 and Eastern Cape terminals around 21. These enhanced GCH figures directly lead to improved ship working hours, quicker vessel turnarounds and make South African ports more attractive to vessels.
Furthermore, investments in technology are upgrading systems and network infrastructure. Mdaki noted a significant decrease in network outages, which previously caused considerable disruptions, thanks to the support of internal ICT teams.
The consensus among the panelists is that while challenges remain, the crisis has catalysed investment in necessary infrastructure and processes. The collaborative spirit, improved procurement and technological advancements, coupled with robust cold chain monitoring, are setting the stage for sustained growth and efficiency in South Africa’s critical agricultural export sector.
Addressing future demands and cold chain integrity
These improvements are critical in preparing for future growth in agricultural exports. As Sihlobo emphasised, the agricultural sector’s yields are set to increase significantly with continued technological adoption, and the citrus industry alone projects a substantial rise in export volumes. This anticipated surge in volume will place increased pressure on ports, underscoring the importance of Transnet’s long-term planning, including considerations for near-term and long-term capacity.
The discussion also touched upon the vital role of technology in maintaining the cold chain for perishable exports. It was confirmed that monitoring quality and temperature in containers during shipment is “fairly standard” for citrus exports, serving as both a quality control measure and a requirement for phytosanitary compliance. This means that data can be collected throughout the journey, and at the endpoint, a graph can be generated to show temperature variability, ensuring the integrity of the product. This sophisticated monitoring is essential for preserving the quality of fresh produce throughout its journey from farm to distant markets.