In an effort to gear up to handle increased volumes of citrus for current citrus export season, Transnet Port Terminals (TPT) says it has operators of lifting equipment concluding a multi- skilling process to obtain multiple machine licenses to create flexibility.
It is also updating national berthing daily, sharing it with industry, to avoid excessive open stack days where vessels are delayed in other terminals.
In an interview, TPT CEO Jabu Mdaki, who has a little over a year's tenure in the office, said increased volumes were anticipated this year in the Gqeberha and Durban container terminals, from where 75% of the citrus was exported.
"The balance is handled at the Cape Town Container Terminal. The container terminals will remain open over a 24-hour period and have dedicated lanes prioritising refrigerated containers at the gates for the citrus season,“ Mdaki said.
The citrus season is expected peak in July and is anticipated to yield 5% higher volumes than last year.
According to Citrus Growers Association (CGA) statistics, 16.2 million 15 kg cartons comprising of grapefruit, mandarins, lemons and navels have been shipped so far. The industry expects to export 165.5 million cartons over last year's 164.8 m cartons.
The season begun this month and is expected to end in October.
TPT, one of six operating entities owned by Transnet responsible for loading and offloading about 65% of the country's goods on vessels from seven commercial ports across a network of 16 sea cargo terminals, said it had also seen to the conclusion of repairs, maintenance of plug points as well as lighting.
Mdaki said TPT's motivation came from the company’s performance flowing over from the past 2022/2023 financial year where many challenges were presented, and the business and industry showed resilience in handling 3.7% more citrus exports compared to 2021.
This was despite the KwaZulu-Natal floods and tough new European Union (EU) regulations, which he pointed out," did not give local farmers much room to prepare. And we worked together, hand in hand to ensure their exports reached their destinations on time and in good condition."
Citrus fruits make up about 55% of all fruit produced nationally, with oranges being the biggest citrus type. TPT handles all export citrus from Limpopo (43%), Eastern Cape (27%), Western Cape (17%), Mpumalanga (8%), KwaZulu Natal (2%), Northern Cape (2%), and North West (1%). The citrus fruit is exported to over 100 countries mainly in the EU, UK, the Middle East and the US.
TPT's state of readiness comes as the CGA is scouting opportunities further afield to export fruit through the Maputo port in Mozambique, which CGA’s Logistics Development Manager, Mitchell Brooke, said was a logical step in checking the capacity of the current infrastructure available to handle the volumes of fruit shipped out of all South African ports, including through Mozambique.
The CGA is collating the capacity data with the planting data to see what the expected productions will be over the next four to five years.
"From the results it is quite clear that volumes are set to increase further and will exceed the capacity of the infrastructure that is currently available”, Mitchell said after a tour of the DP World Container Terminal to see the new reefer yards and operational set up.
Mitchell found that Maputo now has three fully functional and operational cold stores and an ambient facility in the port that can handle export citrus. Coupled to the landside infrastructure, good shipping opportunities now exist for shipments primarily to Middle East, Asia and Far East markets with very good transit times.
"Cold store developments, coupled to a 24-month expansion and development on the road and rail, border crossing, port infrastructure and terminal expansion, will no doubt position Maputo as an extremely attractive port for exports," Mitchell said.
Mdaki said TPT viewed Maputo as part of the regional port complementary system to serve the regional economy.
“Maputo has seen growth in the bulk commodity boom of chrome and magnetite. At the same time, TPT is working very closely with stakeholders to restore the export capability of the Richards Bay Terminals who move these commodities, to further support the regional economy,” he said.
Loadshedding
On loadshedding, he said TPT banked on prior planning, anticipated vessel arrival and a schedule of planned power outages. Terminals had also adopted routine housekeeping practices during the downtime, which made use of land-side equipment that did not require electricity to operate.
The focus on housekeeping brought effectiveness in the recovery of operations when full power resumed.
"While terminals across the seven commercial ports do have back up power – it is not sufficient to carry the entire operation per site. With special consideration as a critical node of trade, the terminals are not exempt from load shedding and are subject to electricity curtailment that slows down the operation, which is a standing matter in internal engagements on risk solutions”, he said.
Mdaki added that TPT was reviewing its plans because of the potential Stage 8 loadshedding, which would have a greater impact and as such, they were working with the port authority and industry to prepare in advance.
He said the TPT's R8 billion tender for the long-term agreements with the original equipment manufacturers (OEM) was originally set to close on May 2, 2023 but had been extended until May 23.
It entailed contracting directly with the OEMs for outright purchases of new equipment specific to them as an OEM and there were 11 pieces of equipment to be covered for now.
The scope also catered for the asset lifecycle management of the different pieces of equipment directly by the OEM and this entails the spares replacement and maintenance and refurbishment of the equipment.
"The anticipation is to have the contracts for the first batch of equipment in place by September 2023. These contracts will be over a period of 10 years for acquisition and 20 years for asset lifecycle management. Equipment mainly includes ship to shore cranes, rubber-tyred gantry cranes, haulers and straddle carriers.
“We do remain with the documented challenge of equipment and over the next five years, TPT will spend over R8 billion on acquiring about 700 pieces of new equipment across its terminals," he said.
TPT had also recently approved OEM multiple single source confinements, which covered all the spares and technical support for existing operational equipment for a period of seven years – and that this was current the procurement process to reduce long lead times, he said.
BUSINESS REPORT