The Citrus Growers’ Association (CGA) has welcomed the government’s authorisation of a R51 billion guarantee facility for Transnet. The CGA noted that it is encouraged by Transnet’s recent progress in advancing official processes for several upcoming public sector partnerships (PSPs).
The citrus industry is hopeful that the recent series of PSP announcements signals a turning point in thinking about how South Africa’s logistics landscape should function.
Chief executive officer of the CGA, Dr Boitshoko Ntshabele, said the R51 billion guarantee would assist in Transnet’s recovery, of which a significant element is strong collaboration with customers and industry partners.
Peak citrus season approaching
“With oranges now starting to move to export markets, the 2025 citrus season is approaching its peak weeks. The Citrus Growers’ Association of Southern Africa (CGA) is appreciative of preparational steps taken by Transnet Port Terminals (TPT) over the past few months, which includes the recruiting of 256 additional resources on fixed term contracts, conducting maintenance on all reefer (refrigerated shipping container) plug points and adding 100 pieces of new equipment.
“There are challenges on the horizon, but if all goes well, Southern Africa is expected to export 171.3 million 15kg cartons of citrus, according to the latest figures. Shifting produce in an efficient and timely way is essential to the profitability of our industry. The season has started smoothly, but the real test will be the peak over the next two months,” he said.
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Ntshabele said the only way inefficiencies in logistics and related costs can be avoided in the long term is through large-scale PSPs at the ports and in the rail network.
“While recent policy shifts towards PSPs are promising, the citrus industry is yet to experience the benefits of actual, operating PSPs. Partnering with business brings faster upgrades, specialised knowledge, a performance-driven culture, and constant innovation, which almost immediately stimulates employment growth.
“The progress made over the past few months in opening the rail network to private players is encouraging. Urgency on this front, as well as ensuring attractive options for the private sector, will unlock growth opportunities in the citrus sector, which currently only moves 10% of its citrus to the ports by rail,” Ntshabele said.
He pointed out that although some PSP projects at ports are moving forward, the PSP that would have been a game-changer for citrus – the upgrading and management of Durban Container Terminal Pier 2 – is still tied up in a court battle.
“As we look towards the future, and our industry’s ability to create 100 000 jobs by 2032, we appreciate Transnet’s commitment to PSPs and we hope the momentum is kept and that more projects are urgently pursued,” he said.
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