INCORPORATING COLD CHAIN
ASSOCIATIONS
Addressing the challenges faced by the global cold chain industry , Gibbons presented findings from a recent survey of GCCA global board members . Key challenges identified included :
• Competing for talent is increasingly difficult , with cold chain environments often facing higher turnover rates compared to ambient environments .
• The costs associated with advanced cold chain technology and energy are on the rise , putting pressure on industry finances .
• As the industry becomes more visible , it faces growing cybersecurity threats , exemplified by a recent ransomware attack on major cold chain operator Mary Cold .
• Building new cold storage facilities requires significant investment , with capital costs adding to financial pressures .
Despite these challenges , Gibbons highlighted several opportunities within the cold chain sector :
• As the global population expands , so does the demand for reliable cold chain services .
• The replacement of outdated warehouses with new , technologically advanced facilities is improving efficiency and service quality .
• Leveraging data and AI to enhance service delivery and operational efficiency presents a significant opportunity for growth .
THOCHER ’ S ADDRESS AT THE GCCA AFRICA CONFERENCE
Thocher highlighted the ongoing work of the GCCA and its partner organisations — CEBA and the Global Cold Chain Foundation . Over the past 18 months , these entities have made significant strides in redefining their roles within the cold chain industry , focusing on enhancing efficiency and effectiveness across the board .
Thocher provided a detailed overview of GCCA ' s global presence . Despite the industry ’ s rapid changes — marked by growth , consolidation , and shifts in company names and capacities — the GCCA ’ s membership has remained robust . The organisation currently boasts over 1 500 members across 92 countries , with nearly half located outside the US . GCCA is making strides in emerging markets . Thocher announced that in 2025 , GCCA plans to establish a new office in Southeast Asia .
He noted a challenge in obtaining precise and up-to-date data . The last comprehensive study was conducted in 2020 and amid ongoing efforts to update these statistics , early indicators suggest a compound annual growth rate ( CAGR ) of around 10 % in global cold storage capacity since then .
Despite the disruptions caused by the COVID-19 pandemic — such as material shortages and rising prices — the cold chain industry has demonstrated resilience and continued value . Private companies and equity investors remain active , injecting capital into strategic areas to drive growth and innovation .
HISTORICAL AND CURRENT PERSPECTIVES ON COLD STORAGE
Thocher reflected on the cold chain industry ’ s evolution since 2014 , when the GCCA Top 25 list predominantly featured US-based companies , with a few global
operators . Notably , Lineage Logistics was positioned as the second-largest cold storage operator at that time .
Since then , the industry has experienced substantial consolidation . Many companies on that list have been acquired , with Lineage Logistics absorbing most of them to become the largest cold storage operator globally .
One of the most notable updates from the 2024 Top 25 list is the inclusion of Commercial Cold Holdings as the first African company to make it onto this prestigious list . This milestone reflects the growing presence and impact of African cold chain companies . Thocher expressed hope that more African companies will join this list in the near future , acknowledging the continent ’ s potential and the increasing importance of local players in the global cold chain network .
Thocher transitioned to discussing the current challenges faced by the cold chain industry . The sector continues to grapple with rising input costs and increasing demands for technological advancements and service efficiency . Post-pandemic economic pressures have led to higher costs , while customers remain reluctant to pay more . This creates a paradox where the industry must find ways to enhance efficiency and innovation while managing cost constraints .
There are key industry opportunities too , particularly the increased demand for food driven by global population growth . He highlighted a critical issue for the African continent : the anticipated increase in population from 1.5 billion today to approximately 2.5 billion by 2050 . This projected growth underscores the urgency of addressing the continent ’ s food supply chain capabilities .
Moving on to GCCA ’ s international development efforts , Thocher discussed the foundation ’ s ongoing projects aimed at improving cold chain infrastructure in developing countries . These initiatives , which began in 2002 , focus on expanding trade opportunities for US goods while simultaneously addressing upstream and downstream impacts , such as reducing post-harvest losses and enhancing food security .
The projects not only involve building and upgrading cold storage facilities but also include training programmes for cold chain operators . These training programmes are crucial for ensuring that local operators can run efficient and effective cold chains , thereby increasing the resilience of food supply chains and improving access to secure and safe food for consumers .
Food insecurity is a key issue addressed through the African Continental Free Trade Area ( AfCFTA ). This agreement is central to the conference ’ s theme and represents a significant step toward improving food security and trade within Africa . Thocher highlighted GCCA ’ s commitment to supporting this initiative by investing in cold chain solutions that can enhance food security across the continent .
By leveraging the existing cold storage capacity and building new infrastructure , the cold chain industry can better meet the demands of a growing global population and support the efficient distribution of food products . Thocher ’ s address underscored the critical role of collaboration and investment in advancing the cold chain sector , particularly in regions poised for significant growth . CLA
COLD LINK AFRICA • November / December 2024 www . coldlinkafrica . co . za 7