Cold Link Africa September 2020 | Page 16

ASSOCIATIONS INCORPORATING COLD CHAIN Latest updates from the CGA By Justin Chadwick, CEO of the Citrus Growers Association At the start of the 2020 season we realised that there would be some difficulties in 2020; as we entered harvesting, and COVID-19 became a reality, more headwinds were experienced. The CGA COVID-19 response committee identified as a high risk area the fact that workers would become ill, putting pressure on operational performance. This was to be the case on farms, in packhouses, transport, cold stores and at the ports. These expected challenges have put incredible pressure on all in the supply chain. The past few have seen some unexpected challenges too; the diesel shortage caught us by surprise (and is hopefully in the process of being resolved). Added to this, the lawlessness of truck drivers as they resorted to criminal activities – and government’s inability to secure the safety of those who wanted to get on with their jobs. The South African economy is essentially on life support – and these activities put it one step closer to the grave. It is time to take the strongest possible actions to stop all criminal behaviour. As a result of the strike many loads have not been able to be dispatched to the port – this will cause congestion once the loads start to flow again. CGA MEETS WITH PROVINCIAL AGRICULTURAL DEPARTMENTS In early July, CGA Directors George Hall and Gerrit van der Merwe joined CGA staff members Justin Chadwick and Mitchell Brooke, and CGA GDC GM Lukhanyo Nkombisa in a video conference call with Minister Ivan Meyer, Dr Sebopetsa Mogale (Head of Department), and Jeremia Aries, Daniel Johnson and Marietjie van Jaarsveld of the Western Cape Department of Agriculture. The discussion honed in on the major opportunities and challenges facing the citrus industry in the province. High on the agenda was the ongoing problems at Cape Town port, which is not only on Minister Meyer’s list of priorities, but also that of the economic cluster in the province. Discussions then turned to trade – and the growth opportunities in the soft citrus sector in the Western Cape. Minister Meyer outlined government’s plan to increase fruit exports from the province by 5% – the citrus sector can play a prominent role in meeting this target – one enabler that is essential is government’s role in accessing new markets and optimising present market access conditions. Transformation is naturally high on both governments and industry’s agenda – and there was meaningful discussion on how to ensure that growth in the province is inclusive. The agenda also included discussions on rural crime and security, humanitarian aid and industry and provincial government’s response to COVID-19. In a further engagement, members were joined by CGA Directors Ben Vorster, Piet Engelbrecht, Jan Louis Pretorius, Bennet Malungane, Guy Whitaker and Tommie Landman when CGA held a video conference with the HOD of Limpopo Department of Agriculture and Rural Development Jackie Maisela and members of her staff – TL Mathobo, CV Ndlozi, MW Moeng, JJ Mkhari and KA Tshikomolo. The Department shared with the CGA their Revitalization of Agriculture and Agri Processing Value Chain plan – which is completely aligned with CGA’s own vision for the citrus sector. The meeting provided an opportunity to delve into some of the factors inhibiting growth in the province – such as logistics, ports and market access; as well as to delve deeper into the roles that we can play in driving inclusive growth in the province. There were a number of follow-up actions that were identified – the start of a close relationship in the future. TRANSNET PORT TERMINALS (TPT) BRINGS ON VELILE DUBE AS CHIEF EXECUTIVE Velile Dube is a well-known figure to those close to TPT, he has served in various roles across the port terminals. CGA held a teleconference call last week with Louis von Zeuner, Velile Dube and the container terminal managers across all the ports. Velile outlined his plan for TPT going forward and he has already made sweeping changes. Something which we believe to be positive is the fact that each terminal manager will be at the centre of that terminal’s functioning and performance. All activities will be directly accountable to the terminal manager, where previously many core functions were centralised; such as maintenance of machinery and equipment. Five key elements are at the centre of terminal performance, and all these functions need to be suitably in place for a terminal to achieve high levels of performance: 1. Management: Aside from Cape Town Container Terminal and Cape Town Multipurpose terminals having acting terminal managers, we are very confident in the abilities of the current terminal managers at all the ports container terminals. Fresh Fruit Portal Collaboration from engagements with various provincial governmental representatives has shown promise over recent months. 2. Machinery and equipment: We understand that machinery and equipment is ailing at just about all the container terminals due to historically failing procurement and ailing maintenance. TPT are on the warpath to change this with a massive procurement and maintenance drive across all terminals to boost machinery and replace those that are ailing. Having the terminal managers at the core of this will see things change drastically. 3. Human resources: The HR function is another aspect that Velile outlined will be decentralised and taken back to terminal level, another very positive move. All staff at terminals need to have the correct skills and training to be in those positions and need to be conditioned about the need for high levels of productivity. 4. Processes: A core aspect of terminal functionality that leads to high productivity is good operational and planning processes. After all, if you fail to plan properly, you plan to fail properly. CGA has motivated for an integrated systems approach to connect all stakeholders in the chain involved in importing and exporting of containers to be connected to a central online platform – this will allow TPT to move towards a pull approach from a previously disastrous push approach. 5. Infrastructure: Something that we see across most highly efficient container terminals is good infrastructure. From landside access in and out of terminals, as well as the design of the yard configuration and quayside layout. The only container terminal in South Africa that actually replicates the design and configuration aspects of highly efficient terminals is that of the Ngqura Container Terminal (forgoing the aspect of the wind and swell effects that impact the ports productivity). The access into and out of NCT, the design layout and yard configuration is probably the closest to replicate efficient terminals. Durban Pier 2 has unfortunately a very poorly designed quayside and landside configuration. To quote a well-known port consultant: “The road access into and out of Pier 2 is totally unfit for purpose”. Let us not despair though as Transnet have commissioned a Durban port decongestion committee focused on resolving this matter. Outlined in the engagement with TPT is the fact that over the past three citrus seasons, exports have been heavily impacted by operational problems at the container terminals – Durban in 2018, Ngqura and PE in 2019 and now Cape Town in 2020 (although it needs to acknowledged that the latter very much associated with the impact from COVID-19). WORLD CITRUS ORGANISATION (WCO) GOING FROM STRENGTH TO STRENGTH In July 2020, the WCO held a members’ meeting with almost fifty delegates representing sixteen citrus-growing 16 www.coldlinkafrica.co.za COLD LINK AFRICA • September 2020