Early warnings of port chaos ignored
State-owned logistics firm Transnet was warned of an impending crisis at the Port of Cape Town but instead turned a blind eye to warnings from organised business and the Western Cape government, according to a document seen by Business Day.
Equipment breakdowns and a lack of maintenance have caused backlogs and delays at the port, resulting in plummeting export figures and exporters losing billions of rand in revenue.
Shipping delays at the port cost the fruit industry an estimated R2.5bn in the 2021/22 season, with no improvement since then. The table grape industry alone lost about R2bn in the 2022/23 season.
According to Wolfe Braude, manager of the fruit desk of the Agricultural Business Chamber, SA fruit exports are valued at about R72bn and account for about 35% of SA’s total agriculture exports.
In a letter to finance & economic opportunities MEC Mireille Wenger in December, ahead of the deciduous fruit harvesting season, acting CEO of Transnet Michelle Phillips assured her there was “no crisis in Cape Town — at least not in respect of the port”.
In a letter, dated December 7 and also seen by Business Day, Wenger and Fruit SA had warned about the slow movement of produce at the port due to shipping delays.
Fruit SA is an umbrella body for fresh fruit associations, including Berries ZA, SA Subtropical Growers Association, the Citrus Growers’ Association of Southern Africa, Fresh Produce Exporters’ Forum, Hortgro and the SA Table Grape Industry.
The body flagged various inefficiencies at the port, including failures and unavailability of equipment.
However, in the letter addressed to the MEC, Phillips stated that Transnet Port Terminals (TPT), a subsidiary of the logistics and rail firm, had appointed equipment manufacturers to assist Transnet with maintenance, spares and technical support.
In addition, the TPT said it had placed an order for 27 new rubber-tyred gantry (RTG) cranes. These are towering structures that dominate the landscape of container terminals and are designed for the swift movement and stacking of containers in ports. They have the
added advantage of mobility, making it easier to load and unload containers. The gantry cranes are expected in the fourth quarter of 2024.
“The terminal has increased the number of internal haulers from 32 to 42, while ship-toshore cranes are averaging at eight, with the ninth machine out for maintenance repairs,” Phillips said.
Recruitment of additional engineering personnel and other critical skills remains a key priority in ensuring maximum reliability at the Cape Town container terminal, she said.
The TPT conceded that the container terminal has recorded a 14% decline in deciduous fruit volumes compared with last season, raising the industry’s concerns. The entity has blamed adverse weather, among other reasons, for the decline.
Acting Western Cape TPT managing executive Oscar Borchards said: “Weather is not our only problem, but it really sets us back as we have to close the terminal for extended periods.
‘DISASTER’
“As such, out of the seven rubber-tyred gantry cranes which were delivered in December, three have been handed to operations so far.
“There are pockets of excellence here and there and performance records broken. However, it’s consistency that we need to focus on.”
Wenger described the situation at the port as a “full-blown disaster” despite assurances from Transnet that the challenges would be resolved. “The significant deterioration at the Port of Cape Town over the last month, already off a low performance base, now constitutes a full-blown disaster, costing economic growth and job creation in this province and in SA.”
“Despite warnings from myself, the premier, exporters, farmers and key stakeholders across the port logistics value chain about the ability of the port to efficiently manage the current peak export season, no decisive or effective action has been taken,” the MEC said.
Business Day has previously reported that industry association Hortgro and other industry representative bodies want to hold Transnet accountable for losses and damages suffered by farmers and exporters.
The bodies are considering legal action against Transnet and are evaluating various legal options, including a class-action suit against the utility.
On Tuesday, Hortgro executive director Anton Rabe said the legal teams are conferring on the matter.
The bodies are still calculating the losses that farmers and exporters have suffered.