The estimated total cost of inefficiencies at the Port of Cape Town to the apple and pear industry a year in the Western Cape is R999m, according to one of the continent’s leading fruit-growing, packing and marketing companies.
“While we recognise that the Port of Cape Town management is implementing a terminal turnaround strategy and welcome the acquisition of new infrastructure, the worryingly slow pace at which it is happening remains a deep concern and has direct cost implications for the agricultural sector,” said agriculture, economic development and tourism MEC Dr Ivan Meyer.
Meyer was speaking after a visit to Two-a-Day (TAD) — previously known as Elgin Fruit Packers Co-operative Limited — in Grabouw, which comprises more than 50 farms and 3,300 hectares.
TAD MD Attie van Zyl said during the visit the cost of port inefficiencies to the apple and pear industry was R999m annually.
“Our apple and pear growers are directly affected. The total estimated cost of a dysfunctional port for our farmers is R26,000 per hectare,” he said.
“While this figure is deeply worrying, it does not show the full extent of the loss to the agriculture sector because we are not calculating the opportunities lost of growing into new markets. We are not seen as a reliable supplier to the international market because we cannot guarantee delivery,” said premier Alan Winde.
Department of economic development and tourism project manager for logistics development Glen Steyn said the department was having constructive engagements with Transnet National Ports Authority and were developing a digital logistics planning platform to reduce cargo bottlenecks.
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