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INCORPORATING COLD CHAIN |
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THE CHALLENGE FOR THE FRUIT INDUSTRY AMID CAPE TOWN PORT CONGESTION
Industry bodies , including Hortgro , SATI and FPEF , have issued a joint statement with Transnet , expressing concern over potential logistical challenges . While the Port of Cape Town faces operational difficulties , the organisations say they are actively working with Transnet to address strategic and operational issues .
Amid the uncertainty , there are indications of potential improvement . Transnet has shared readiness plans with industry organisations , outlining an eight-point plan to enhance efficiency and address immediate crises . The joint statement reflects a collective effort to navigate the challenges and ensure logistical improvements in the coming months .
The Cape Town Container Terminal ( CTCT ) has taken on dozens of new hires in hopes of
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rescuing a disastrous deciduous fruit export season , with port capacity hobbled by lack of capacity . The terminal operator , Transnet Port Terminals ( TPT ), in late January announced the hiring of 62 new employees and an increase in the number of transport haulers from 33 to 44 to cope with the heightened demand for fruit exports this month .
Yet frustration within the industry has escalated to the point where legal action is being considered to recoup losses incurred due to delays . Industry leaders emphasise that ongoing problems could lead to court involvement , signaling a significant shift in their tolerance for the present situation . Exporters are exploring alternative solutions , such as moving containers to Eastern Cape ports to alleviate pressure in Cape Town . Some grape exporters have experienced delays , prompting considerations of charter vessels to ensure timely deliveries to key markets like the US .
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As the industry navigates these turbulent waters , the focus on specialised reefer shipments gains prominence . Although more expensive , the efficiency gains and reduced exposure to wind-related disruptions make this option increasingly attractive for growers and exporters .
In a radio-broadcast interview by Moneyweb with Anton Rabe , executive director of Hortgro , Rabe noted that Transnet cites wind as a significant challenge , but that is a long-standing issue that can be managed , while international expertise , which has been offered but declined , might be crucial in finding solutions . The port ' s struggle with wind should not be an excuse , especially when other ports globally face similar challenges , he noted .
“ Transnet has made promises and set self-imposed deadlines , but the reality falls short . Despite assurances , critical equipment like rubber-tyred gantries
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imported from the US has not been fully operational , leading to heightened frustration . The inefficiencies and delays during the Christmas and New Year period have further exacerbated the situation .
“ Global customers are already indicating programme cancellations , affecting South Africa ' s reputation as a consistent supplier of high-quality produce . Private operators in terminals is a global trend and a potential solution to the ongoing crisis , though it challenges the traditional model of government-owned ports ,” said Rabe .
While quantifying losses is challenging , Rabe said that last year ' s estimated loss for fruit types within Hortgro was at least R1- billion . “ Fruit shipments reaching destinations 40-50 days old raise concerns about quality . Considering vessel-by-vessel legal recourse and potential class action , the industry is exploring ways to hold Transnet accountable for the ongoing crisis .” CLA
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How can the private sector shape itself in the supply chain profession ?
The 2023 SAPICS Spring Conference for supply chain professionals was held on 20 September in Fourways , Gauteng .
Of particular interest to the cold chain , a panel discussion was held on the topic of ‘ How can the private sector shape itself in the supply chain profession ?’ which also looked at a self-regulation tool for logistics . The panel consisted of :
• Kathy Bell , transport and logistics industry specialist : Standard Bank
• Isabel Meyer , principal researcher : smart mobility at Council for Scientific and Industrial Research ( CSIR )
• Barbara Mommen , independent consultant
• Jayce Lane , managing director : Crickmay
• Facilitator : Devlyn Naidoo , executive : SARS and OGA SAAFF
To a question on self-regulation in the South African cold chain logistics industry and how it can be applied to address issues such as business competition , community disruptions and corruption at borders , Bell replied that none of the aforementioned factors impede the ability to adopt self-regulation . “ Corruption is unfortunately prevalent in many industries , including logistics . Operators in the supply chain are exposed to corruption , which can hinder the smooth functioning of the industry . However , despite these challenges , self-regulation remains a viable concept for addressing them .
“ In the logistics industry , particularly for operators involved in transportation for export markets , there are unique challenges related to physical movements and practicality around telematics and driver management . Additionally , service delivery protests and attacks on trucks can impact operations ,” she said .
Despite these challenges , she felt selfregulation can still be effective . Telematics plays a crucial role in connecting drivers
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By Eamonn Ryan , based on a section of a panel discussion
and monitoring truck locations . It goes beyond mere tracking and enables efficient management of drivers .
She described the company ZZ2 in the tomato supply chain , as having implemented RTMS and telematics – a technology that allows for the remote monitoring and tracking of vehicles . It uses GPS and cellular communication to collect data such as location , speed and engine diagnostics .
“ The company uses many Volvo trucks , and within the first year of its implementation one of its drivers was awarded the best Volvo driver in the world . This shows that telematics is not just about tracking truck locations , but also about measuring driver behaviour . The data collected by the company goes to Volvo in Sweden for analysis .
“ We have many such case studies and examples of how sustainability can be achieved in the transport industry notwithstanding the different challenges mentioned – telematics enables operators to reroute or follow security protocols ,” says Bell .
The speaker expressed excitement about the concept of expansion of rail : “ There ’ s no doubt that bulk commodities should be transported via rail . It shouldn ’ t be a choice of either road or rail , but choosing the most suitable .”
In turn , Lane described self-regulation as ‘ the long game ’.
“ It ’ s not about profits or out-competing someone else – but offering clients better rates and more professional services over the long term . By innovating in the supply chain , transporters can improve their performance and make their customers more accepting of their services . Selfregulation and software are important for the public today so that public can be confident that those who adopt them are of the right calibre and have ‘ heart ’. Self-regulation is about playing the long game and building up the country ,” said Lane . CLA
All images by Cold Link Africa
The SAPICS Spring Conference was held on 20 September 2023 .
One panel discussion looked at the issue of self-regulation and telematics .
There ’ s no doubt that bulk commodities should be transported via rail . It shouldn ’ t be a choice of either road or rail , but choosing the most suitable
www . coldlinkafrica . co . za COLD LINK AFRICA • March / April 2024