Compiled by Eamonn Ryan from the presentation At the GCCA Africa Cold Chain Conference held in Cape Town, Renier du Preez, CEO of supply chain and logistics provider Digistics and at the time vice chair of GCCA Africa, addressed the urgent need for sustainability within Africa ' s cold chain logistics sector emphasising the impact of climate change and rising operational costs on the industry.
NETWORKING
INCORPORATING COLD CHAIN
Cold chain sustainability in a changing world
Compiled by Eamonn Ryan from the presentation At the GCCA Africa Cold Chain Conference held in Cape Town, Renier du Preez, CEO of supply chain and logistics provider Digistics and at the time vice chair of GCCA Africa, addressed the urgent need for sustainability within Africa ' s cold chain logistics sector emphasising the impact of climate change and rising operational costs on the industry.
If you ' re running a cold store or your business the way you did five to seven years ago, " you ' re in trouble ". This set the tone for a discussion on how businesses must adapt to the rapidly changing landscape.
Du Preez highlights that climate change is no longer a distant threat; it’ s an immediate reality impacting operations. He cites extreme weather events as indicators of the climate crisis that can disrupt supply chains.
“ While the conversation around sustainability often revolves around costs, with stakeholders expressing concerns about return on investment, there are innovative approaches that can be taken. How can we do this differently?" he asks, underscoring the importance of finding sustainable solutions that also make financial sense.
He shares insights from Digistics ' own sustainability initiatives, particularly in solar energy implementation in warehouses and advancements in vehicle technology, such as tri-axle designs. He notes the challenges posed by rising electricity costs in South Africa, where Eskom tariffs have increased dramatically over the past 15 years.
" While Eskom ' s debt continues to climb, so too do our operational costs," Du Preez says, highlighting the need for the industry to adapt and innovate. He stresses that reducing carbon emissions is not just a moral obligation but a practical necessity in maintaining competitiveness.
Reflecting on recent blackouts and the lingering threat of load shedding, he cautions that introducing renewable energy into a grid historically dependent on coal is fraught with complexity.“ Any spike in the grid could result in shutdowns, so contingency planning is paramount,” he explains. He also highlights the inefficiencies within local municipalities and the convoluted dynamics between private and government sectors that further complicate operations.
Water scarcity emerges as another looming challenge.“ We must recognise that water will soon be a critical issue, and we need to address this proactively,” Du Preez states. This points to a broader trend in which businesses must prepare for multiple contingencies and seize opportunities in doing so.
Du Preez also discusses legislative pressures, particularly the recent Climate Change Act in South Africa.“ This law is not negotiable; compliance will be necessary,” he asserts. As part of the country’ s commitment to the Paris Climate Agreement, businesses must understand their emissions baseline and develop reduction strategies.
He warns that South African exporters could face significant hurdles due to international mechanisms like the carbon tax adjustment mechanism in Europe, which could make it challenging for local suppliers to compete.“ The cost of products will inevitably increase if we can’ t meet these standards,” he notes, urging companies to begin adapting now.
Looking at the financial implications, Du Preez indicates that while current returns on investment for sustainability initiatives might seem bleak, the future cost of electricity and compliance could alter the landscape dramatically.“ With Eskom’ s debt continuing to rise, somebody will have to bear the burden of these costs,” he says.
Du Preez shares how Digistics has begun addressing these challenges. Three years ago, the company made a decisive move toward sustainability, focusing on solar energy and battery storage solutions for its warehouses.“ We were fortunate to have space for solar installations without needing to reinforce our roofs." This strategic investment not only aims to reduce operational costs but also enhances resilience against potential energy supply disruptions.
He urges the importance of peak shaving strategies, explaining that the varying electricity rates charged during off-peak, standard and peak hours heavily impact operational costs.“ Between 6:00 and 9:00 we face significantly higher rates, and that ' s where we needed to innovate,” he says.
The integration of solar allows them to harness energy during the day, while the battery system provides power during peak hours, effectively flattening their electricity usage curve.“ By using solar to recharge batteries during the day, we can reduce our reliance on the grid during those expensive peak times,” Du Preez explains.
The impact of these changes is evident in the company’ s financial outlook. What initially appeared as a seven-year payback period on the solar investment has been reduced to as little as three to four years due to the resulting savings on electricity bills.“ This gamble is paying off, and I encourage others in the industry to consider similar solutions,” he notes.
Moving beyond warehouse energy solutions, Du Preez also discusses advancements in their truck fleet. Digistics has begun outfitting vehicles with solar panels and battery units. However, he acknowledges the limitations of this approach, as the solar power generated on the truck isn’ t sufficient to fully recharge the batteries without a reliable grid connection.“ Currently, the vehicles need to be plugged in after their shifts to recharge, which makes the system somewhat reliant on the grid,” he states.
In response to these challenges, Du Preez highlighted the development of tri-axle technology, which allows vehicles to generate energy as they drive, thereby charging the battery while on the move.“ We have four of these units running, and they are performing well. When they return after a 12-hour shift, the battery levels are typically between 30 % and 39 %,” he explains, noting the potential for even greater efficiency.
“ We’ ve found that by not relying on the grid, our trucks can maintain a fully charged battery by the time they reach their first delivery,” he explains, demonstrating the effectiveness of this technology. However, he points out that this technology may have limitations for shortdistance deliveries, particularly within a 100km radius. Nonetheless, he remains optimistic about its applicability for longer routes, which he believes will greatly enhance operational efficiency.
Du Preez advocates for a hybrid approach to energy management, combining grid electricity, solar power and generators.“ Generators can’ t run 24 / 7, but by using solar during the day, we can alleviate some of that burden and reserve generator use for nighttime operations,” he explains.
He expresses optimism about the opportunities presented by the African Continental Free Trade Agreement. He points to the need for solutions that not only ensure the reliability and quality of food but also address cost concerns in the cold chain sector.“ Africa is an opportunity, and we must leverage it wisely,” he urges. CLA
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COLD LINK AFRICA www. coldlinkafrica. co. za March / April 2026