R1 Billion Lost In Apple And Pear Exports As Cape Town Port Delays Disrupt Supply Chains

The Western Cape Department of Mobility met on Monday, 11 August, with Two-a-Day, one of South Africa’s largest apple and pear packing and marketing cooperatives, and logistics partner Link Supply Chain Management for a strategic discussion and site visit.

“We work in a complex, time-sensitive value chain. If a vessel to Europe, the United Kingdom, or the Far East is missed, the sale is gone. You don’t get a second chance to deliver on time in a programme-driven market," said Roelf Pienaar, managing director of Tru-Cape Fruit Marketing.

“Logistics is the single biggest risk for us right now. If we can’t get our product out, everything else — from on-farm innovation to market development — is compromised."

High costs and diverted shipments

Two-a-Day operations director Chris Petzer said delays have at times forced shipments to be rerouted to Port Elizabeth at significant cost.“It’s not sustainable, but sometimes it’s the only option to prevent greater losses,” he said.

Link Supply Chain Management managing director Chris Knoetze said that while there has been some improvement in crane productivity, it remains well below optimal levels.

"Given several interventions, like Transnet’s appointment and changes at senior management level, the repair and maintenance of equipment, solving personnel matters, focusing on operational improvement and capital investment in new rubber tyre gantry cranes (RTGs) in Cape Town Container Terminal, we should expect to see a step change in productivity to at least twenty gross crane movements per hour (GCH) or more in the coming months. However, the process is still too slow and far removed from the 33 GCH reported by Transnet in November 2012," Knoetze said.

He added: "When port operations are disrupted, it impacts product quality, increases costs, and damages our credibility with overseas buyers."

Knoetze estimated that the inefficiencies have cost the industry R1bn through additional storage, trucking, and plug-in costs, as well as missed market opportunities.

“We urgently need to fast-track the privatisation of the Cape Town terminal to restore competitiveness."

Government’s response

Western Cape Department of Mobility deputy director-general Corrine Gallant said measures are being taken to address both "landside and waterside inefficiencies".

"This includes improving road freight safety and capacity, restoring rail services like the Overberg line, and ensuring that the Western Cape’s needs are heard at a national level. We cannot afford more costs in the chain — our focus is on solutions that remove bottlenecks and protect jobs," she said.

Western Cape Mobility Minister Isaac Sileku emphasised the need for speed: "We cannot afford to be reactive. We must have formal agreements and mechanisms in place so that when bottlenecks arise, we know exactly which button to press. Speed of execution is critical — our farmers and exporters cannot wait years for solutions."

Next steps

Stakeholders agreed on the need for:

• Faster execution of port and rail improvement projects.• Formal industry-government forums with direct access to decision-makers.• Targeted short-, medium-, and long-term actions to resolve both immediate and systemic challenges.

The Western Cape apple and pear industry is a major employer and contributor to the provincial economy. Industry leaders warn that improving the port’s efficiency is critical to sustaining jobs and protecting South Africa’s standing in global fruit markets.