Bumper exports ‘to test SA logistics’
SOUTH AFRICA’S logistics will be put to the test again as the country gears up for another bumper agricultural harvest, with large export volumes forecast, particularly in the horticulture and field crop sub-sectors, according to the Agricultural Business Chamber (Agbiz).
The chamber’s chief economist, Wandile Sihlobo, said yesterday that a greater focus on this area was required as South Africa moved towards the peak season for exports and imports of major staple commodities, such as rice, wheat and palm oil.
“Apart from the near-term demands, the long-term export-orientated growth in South Africa’s agriculture also requires efficient logistics, which could be achieved through co-operation among all stakeholders so that challenges can be efficiently communicated and attended to. In engagements, Transnet is among some of the most important stakeholders,” said Sihlobo.
The success of the Agriculture and Agro-processing Master Plan was said to hinge partly on an efficient and cost-effective logistics industry that would facilitate the movement of commodities across the provinces and to the export markets.
Last week, Transnet Port Terminals (TPT) said that the movement of fresh citrus fruit in refrigerated containers from South Africa to more than 100 countries, including those in the EU, Russia, and the US, was serious business.
TPT said it geared up annually for the citrus fruit export season, which began in May and ended in October, as they handled the movement of refrigerated containers and loaded them on to vessels destined for the world.
This year, TPT said it anticipated challenges because of the global shortage of refrigerated containers, which might prevent farmers from fully benefiting off this year’s production.
The South African division of shipping line MSC was reported to have diverted a vessel that was heading from the Far East to Lomé in Togo, so that it could drop off 1 995 empty refrigerated containers ahead of the season.
Industry estimates already suggested that the country could export 2.80 million tons of maize in 2021/22, which would be the largest volume since the 1994/95 season (compared with an estimated 2.79 million tons in the current 2020/21 season).
The Citrus Growers’ Association recently said the “South African citrus industry would likely break all previous export season records, with an estimated 158.7 million cartons in 2021, from 146 million cartons in 2020”.
The estimates from the wine industry also pointed to a slightly larger harvest in 2021 compared with the previous year. South Africa’s agricultural sector remained a net exporter, with exportable volumes of various commodities growing each year when weather conditions permitted.
The export value of $10.2bn (R145.76bn) last year was the second largest on record after that in 2018.
Over and above the regulations and trade agreements that allowed South Africa’s agricultural sector to enjoy this excellent export performance, the logistics industry had played a crucial role in the success of the past few years.
The expansion of exports in the past few years spoke to the resilience and dynamism of the country’s logistics sector, from handling facilities and transport (road and rail), to the ports.
Agbiz said President Cyril Ramaphosa’s recent visit to the Port of Durban highlighted the importance of the logistics sector, and attention was being given to various challenges, including congestion.
Ramaphosa said the Port of Durban would require R100bn in new investment over the next decade to expand its capacity to handle containers, from 2.9 million units to more than 11 million units.
“We have made improving the efficiency of our ports a priority of Operation Vulindlela, and have focused on rebuilding Transnet, which is one of our valued state-owned enterprises. The new management of Transnet and its operating divisions are resolutely focused on turning the performance of the port around,” Ramaphosa said.