CEO of the Citrus Growers Association of South Africa (CGA), Justin Chadwick, has assured producers that Transnet is pulling out all the stops to ensure a successful 2023 citrus export campaign.
This is on the back of three very trying seasons, which led to major declines in citrus export numbers.
According to Chadwick, each port corridor region has conducted the 2023 reefer season kick-off meetings in which Transnet has laid out plans that focus specifically on rectifying any shortcomings that were seen as impediments during past seasons.
“All the port terminals have, or are in the process of augmenting reefer stack capacity and plug capacity in line with the 2023 seasons export estimates to maximise terminal efficiency and to offset power or wind disruptions,” Chadwick said.
‘Measures are in place’
The port of Durban has historically dealt with space parking of trucks and multiple activities creating delays at the port.
However, the port has implemented the Bayhead Road bypass lane which will assist to ease traffic congestion at the Durban container terminal (DCT). “Traffic management will also be introduced,” Chadwick said.
A strong focus on rail transportation on the Durban corridor is also being implemented from Bela Bela, City Deep, Cato Ridge, and Kingsrest into DCT.
“Coega terminal has put good measures in place to combat the disruption from wind. The terminal will be implementing a truck booking system this season as well,” said Chadwick.
PE, Coega also well set up
Meanwhile, the citrus industry expects shipping services from Coega and PE ports to be well intact for the season.
“Thus ensuring market access from the regions’ ports is attainable without citrus being forced to be transported to Durban and Cape Town,” Chadwick pointed out.
Cape Town has in the meantime managed to clear its container vessel backlog. As of Tuesday, 18 April, vessels will be berthing on arrival, Chadwick said.
“This is a great relief for producers in the north as the product needs to reach Europe and North America in the shortest time possible; ships loaded with citrus can’t stand off Cape Town.”
Next two seasons, critical
Presenting at the 2023 CGA Citrus Summit held recently in Gqeberha, Dr Tracy Davids pointed to the increasingly risky environment in which citrus farmers are operating. Davids is the executive director and manager for commodity markets and foresight at the Bureau for Food and Agricultural Policy (BFAP).
According to Davids, the biggest drivers of domestic risks for the citrus industry are port and logistical challenges leading to delays and quality claims.
“[Also] cold-chain interruptions caused by load shedding affect both qualities of fresh produce and raise the cost to store chilled products.”
On a global front, the biggest risks for the citrus industry include freight rates. Davids said although rates are trending downwards, it is still much higher than pre-pandemic rates.
Recession and restrictions added to the mix
In addition, recession in developed economies has led to lower demand for imported goods, and more stringent market access requirements from the EU leading to technical barriers to trade make matters even worse.
“There are opportunities across the different spheres to reduce the risk profile at the farm level and improve the sustainability of the industry for all role players.
“The management of the next two seasons (2023-2024) is critical to minimise endogenous risks, manage cash flow and mitigate around or through exogenous risks,” Davids said.
Unfortunately, no silver bullet exists to these challenges but a combination of actions can have a significant impact to ensure sustainability on an expansionary path.
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