Fruit producers and marketing groups, including Tru-Cape, Ceres Fruit Growers, Two-a-Day Group, Dutoit Agri, and Link Supply Management, have intensified calls for the privatisation of Cape Town's port.

This follows increasing concern about the expiry of export products due to breaches of the cold-storage supply chain, which threatens the livelihoods of thousands throughout the country, and has led to easterly producers switching from South African to Mozambican port services in recent years.

Chris Knoetze, managing director from Link Supply Chain Management, described the dire nature of the problem:

“There is no investment in infrastructure. There are no rubber tyred gantry cranes (RTG’s), straddle carriers, terminal trucks and chassis on the ground to move the containers and get a flow of the containers into the vessels and get it loaded from the vessels. Research shows global rates reduced world wide by 30% since 2021, but South Africa did not see the same sharp reduction in ocean freight rates. Our competitors benefit from these lower rates, reducing our global competitiveness.”

In a meeting with Western Cape Premier Alan Winde, stakeholders highlighted inefficiencies in the port, with concerns raised about infrastructure investment, equipment maintenance, and the loss of specialized skills in Transnet.

The industry emphasizes the urgent need for solutions to enhance global competitiveness, citing the impact on ocean freight rates. Western Cape Finance Minister Mireille Wenger expressed the importance of getting agricultural products to market, with 55% of agriculture exports originating from the Western Cape.

Steps have been taken to escalate the matter to the national government, and calls for private sector participation continue to gain momentum. Glen Steyn, an economist, stressed the need to focus on the cold chain and refrigerated containers when selecting a private sector partner for the port.

Wenger has so far managed to include an agricultural representative on the National Crisis Committee on Logistics. According to Steyn this will be crucial for selecting the right private sector partner:

“We also got a commitment for seven new RTG’s, which should be in the terminal during the first week of December.”

This adds to pressure created by recent tariff penalties placed on traders at South African ports by major international shipping companies.

However, the impact of these new lobbying opportunities remains to be seen.

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