South Africa’s logistics crisis an opportunity
Local transport companies can steal market share
South Africa's ports and railway networks are not operating at full capacity.
Namibians are well positioned to take full advantage of South Africa’s logistics crisis as their ports are not operating optimally because of loadshedding, while theft and vandalism of railways networks are also adding more pressure.
Simonis Storm economist Theo Klein shared these sentiments in an exclusive interview with Business 7.
According to Klein, “more landlocked southern African countries are transporting their cargo to Namibia, which is recorded as an import, but most likely we just export it for them.”
According to the Namibia Statistics Agency (NSA), Namibia’s export earnings stood at N$8.1 billion in February 2023, compared to N$7.8 billion recorded in January 2023, and increase of N$3.8%.
Fin24 reported that challenges at the Cape Town port continue to frustrate stone fruit farmers and exporters, causing some to consider shutting down their operations, according to industry body Hortgro.
They continue to face delays due to shipping problems, equipment not working, and logistics issues.
For example, recently, stone fruit storage facilities had to stop packing due to a lack of cooling space and electrical power points available at the port.
Role players in the industry are calling for the partial privatisation of port operations to enable a private loading area for fruit organisations, according to Hortgro's latest newsletter. A call has also been made for experts to be roped in to deal with operational problems at the port.
According to André le Grange, a stone fruit producer from Stellenbosch, this type of fruit is sensitive and has a limited shelf life. Therefore, delays at the Cape Town port directly impact the shelf life and quality of the fruit when it arrives in Europe.
Farmers
These challenges are causing farmers not to plant new orchards, which, in turn, leads to a lack of job creation. In the worst cases, farmers end up selling their farms.
Le Grange, for example, is not planting any more plum trees and instead focuses on products for the local market, like butternut and avocados. He goes as far as to say he is ready to dump rotten fruit at the Cape Town harbour in protest.
Thomas Babl, a stone fruit producer from Simondium near Paarl, says there must be a plan B to kick into action if there are delays at the Cape Town port. In his view, this might include using Coega in the Eastern Cape. Cooperation among the ports and shipping companies is essential to ensure fruit can be shipped directly to Rotterdam.
Babl is focusing on identifying cultivars that can be stored for longer.
According to Hortgro's managing director of markets and trade, Jacques du Preez, lower volumes of stone fruit from Chile have created more opportunities for exports from SA in the European market - if local stone fruit farmers and exporters can get it there in time.
Hortgro continues to focus on how the situation at the Cape Town port can be improved and has weekly meetings with Transnet in this regard.
[email protected]
-Additional reporting by Fin24
Simonis Storm economist Theo Klein shared these sentiments in an exclusive interview with Business 7.
According to Klein, “more landlocked southern African countries are transporting their cargo to Namibia, which is recorded as an import, but most likely we just export it for them.”
According to the Namibia Statistics Agency (NSA), Namibia’s export earnings stood at N$8.1 billion in February 2023, compared to N$7.8 billion recorded in January 2023, and increase of N$3.8%.
Fin24 reported that challenges at the Cape Town port continue to frustrate stone fruit farmers and exporters, causing some to consider shutting down their operations, according to industry body Hortgro.
They continue to face delays due to shipping problems, equipment not working, and logistics issues.
For example, recently, stone fruit storage facilities had to stop packing due to a lack of cooling space and electrical power points available at the port.
Role players in the industry are calling for the partial privatisation of port operations to enable a private loading area for fruit organisations, according to Hortgro's latest newsletter. A call has also been made for experts to be roped in to deal with operational problems at the port.
According to André le Grange, a stone fruit producer from Stellenbosch, this type of fruit is sensitive and has a limited shelf life. Therefore, delays at the Cape Town port directly impact the shelf life and quality of the fruit when it arrives in Europe.
Farmers
These challenges are causing farmers not to plant new orchards, which, in turn, leads to a lack of job creation. In the worst cases, farmers end up selling their farms.
Le Grange, for example, is not planting any more plum trees and instead focuses on products for the local market, like butternut and avocados. He goes as far as to say he is ready to dump rotten fruit at the Cape Town harbour in protest.
Thomas Babl, a stone fruit producer from Simondium near Paarl, says there must be a plan B to kick into action if there are delays at the Cape Town port. In his view, this might include using Coega in the Eastern Cape. Cooperation among the ports and shipping companies is essential to ensure fruit can be shipped directly to Rotterdam.
Babl is focusing on identifying cultivars that can be stored for longer.
According to Hortgro's managing director of markets and trade, Jacques du Preez, lower volumes of stone fruit from Chile have created more opportunities for exports from SA in the European market - if local stone fruit farmers and exporters can get it there in time.
Hortgro continues to focus on how the situation at the Cape Town port can be improved and has weekly meetings with Transnet in this regard.
[email protected]
-Additional reporting by Fin24
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