Justin Chadwick on future of South Africa’s citrus industry amid rail policy shifts

SOUTH AFRICA – In his latest opinion piece, Justin Chadwick, CEO of the Citrus Growers Association of Southern Africa (CGA), highlights the transformative potential of South Africa’s citrus industry as it faces both opportunities and challenges.

The industry is set to achieve a new record with an estimated 165.3 million 15kg cartons of citrus exports this year, contributing over R30 billion (USD 1.6 billion) to the national economy.

Chadwick highlights the increasing strain on road infrastructure, which handles more than 90% of citrus transport. The congestion and quality issues, particularly on major routes like the N3, are significant concerns.

“Our analysis indicates that by 2027, we will need an additional 1,552 truck trips per week just to manage the expected growth in citrus exports,” Chadwick points out.

This period of rapid growth coincides with a crucial moment in rail policy reform. Transport Minister Barbara Creecy is spearheading efforts to improve rail logistics, with a focus on reducing road congestion by shifting more freight to rail.

“Minister Creecy’s commitment to integrating private sector involvement in rail operations is a promising development for our industry,” Chadwick comments.

Recent policy changes, including the adoption of the white paper on rail reform and the freight logistics roadmap, are steps in the right direction. However, Chadwick expresses concern over the high minimum access fees outlined in Transnet’s draft network statement.

“These fees and additional charges may pose a barrier to private sector participation, which is essential for addressing our logistical challenges,” he notes.

Despite these hurdles, Chadwick remains optimistic about the potential for a rail renaissance. He advocates for the establishment of freight logistics parks, which could streamline citrus transport and reduce costs.

“The creation of these parks would consolidate fruit freight and make the logistics process more efficient,” Chadwick suggests.

As the Interim Rail Economic Regulatory Capacity (IRERC) reviews feedback on the draft network statement, Chadwick hopes for a final document that will address current concerns and pave the way for significant improvements.

“We are eager to see how the final recommendations will enhance rail infrastructure and overall efficiency,” he says.

Chadwick’s opinion piece reflects a broader hope within the citrus industry that strategic rail reforms will foster growth, create jobs, and deliver economic benefits.

As South Africa’s citrus sector continues to expand, effective logistical solutions will be key to sustaining its success.

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