Transnet CEO pledges reforms in South Africa’s fruit export industry

SOUTH AFRICA – Transnet CEO Michelle Phillips has outlined urgent reforms aimed at revitalizing South Africa’s fruit export logistics, assuring industry stakeholders of tangible improvements.

Speaking at the International Fresh Produce Association’s (IFPA) Southern Africa Conference 2024, Phillips acknowledged the ongoing challenges faced by the fruit industry.

She emphasized the importance of addressing these issues promptly, stating, “We need to stop the bleeding, fix the basics, and get the operations working again.”

Stakeholders within the fruit export sector, particularly those exporting to Europe, have long been frustrated by delays that have nearly doubled transit times.

A journey that once took about 25 days now averages 45 days, causing significant disruptions. An avocado exporter at the conference noted, “This extended transit time is now the norm, but it’s unsustainable.”

Phillips highlighted Transnet’s strategic move to involve private sector participation (PSP) in their operations. “We want the private sector involved in our business, there’s no doubt about that,” she stated, clarifying that this approach is not synonymous with privatization.

She emphasized that PSP has been successful in other African ports, suggesting that similar partnerships could drive positive change in South Africa’s logistics.

Specifically for the fruit sector, Phillips discussed opportunities related to cold-chain rail transport. Transnet is considering the concessioning of economically viable branch lines, which would enable farmers to consolidate produce and transport it efficiently.

“We want rail to be 10% to 20% cheaper than using road transport,” she said, noting the need for additional reefer train sets equipped with on-board power supply.

Transnet is also undergoing a substantial equipment renewal drive, a move welcomed by industry delegates. The company has ordered five new cranes for Durban and Port Elizabeth terminals, along with 44 rubber-tyred gantry (RTG) cranes for Cape Town and Durban.

Additionally, nearly 100 new haulers will be distributed between Nqgura and Cape Town, along with 20 new straddle carriers.

The recent heavy rains in the Western Cape, which disrupted operations, have prompted Transnet to invest in equipment better suited to withstand such conditions. Phillips assured the industry, “We do not want to experience what we experienced during the past season. We’re moving in the right direction.”

Phillips urged the industry to recognize the positive changes underway and to focus on the progress being made.

“We work very closely with the associations, the customers, the shipping lines. We are fully aware that South African fruit exports lose market share if we cannot consistently honour supply commitments,” she remarked.

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