The alarming low ranking of South African ports on a global index has sparked considerable concerns. Experts assert that Cape Town port’s official classification as one of the worst-performing ports worldwide, according to the global Container Port Performance Index (CPPI), is troubling and detrimental to South Africa’s reputation as an exporting nation.
To comprehend the implications of this ranking, we interviewed Chris Knoetze, managing director of Link Supply Chain Management, a logistics company co-owned by Tru-Cape.
Knoetze explained that there are various statistics and metrics used to assess port operations.
“It comes as no surprise. We’ve ranked very poorly in previous iterations of this report, with one of the most critical metrics being gross crane moves per hour. This measures the average number of completed container movements per hour. It’s crucial as it impacts both your landside and sea operations.”
Moreover, Knoetze discussed how international container freight rates have declined post-Covid, but in South Africa, these reductions have not been realised.
Related stories
Impact on fruit exporters
With Cape Town’s port ranking at the bottom of the container port performance index, there are several key challenges that fruit exporters like Tru-Cape face.
“The consequences of poor port operations are twofold: landside and seaside. On the landside, slow port productivity means that trucks bringing containers to the port cannot turn around as quickly.
“In the past, they could manage three to four trips per day; today, it’s roughly one, maybe two trips if they’re fortunate. These inefficiencies escalate the fixed costs for transport operations, and we’ve witnessed a 14% increase in our transportation costs, excluding fuel,” Knoetze explained.
In this episode, she also discusses:
- Dependency on Transnet to fix the ports and maintain global competitiveness;
- the need for quick and excellent execution of these plans and more.
Want to know more? Dive deeper into the episode and gain insights from the award-winning Farmer’s Inside Track, officially recognised as Africa and the world’s best podcast at the 2024 Digital Media Awards presented by WAN-IFRA, the global press organisation.
Option 1: Click here to listen on Spotify (all mobile and other devices).
Option 2: Click here to listen on any Apple device.
READ NEXT: Steenhuisen aligns with ANC policies: Agriculture sector’s response
Sign up for Farmer’s Inside Track: Join our exclusive platform for new entrants into farming and agri-business, with newsletters and podcasts.
