Exporters call on Transnet to subsidise inland transport costs

Fruit exporters have called on Transnet to ease pressure on congested ports by helping to carry transport costs to less busy ports. Some of South Africa’s biggest fruit exporters believe that with the port of Durban under such extreme pressure it makes sense to rather use other ports like Cape Town that are not as busy but have capacity to handle extra volume. But the increased cost of moving the fruit to Cape Town rather than Durban cannot be carried by the exporters alone – hence the request to Transnet to take on a share. “Industry has been knocking on Transnet’s door for at least four years now,” said Andy Connell of Dole. “The ports are stressing all their assets in one location and not even sweating assets in other locations. We have come to them with proposals on how to share the load and ease the pressure on some ports but nothing has been forthcoming.” Nico Walters, general manager strategy for Transnet National Ports Authority (TNPA), said he was aware of such a proposal but was not in a position to comment on why it had not been considered to date. Connell said the proposal was simply to use Transnet’s assets where and when they were needed at ports and to move fruit to those terminals where capacity existed. “Why can’t we bring the fruit to Cape Town instead of smothering Durban with too much volume,” another exporter asked FTW. “The growth in exports is being curtailed by this situation where some ports just can’t handle the volumes any more and then we just keep sending more and more product there.” Another exporter said industry’s proposal was that either through rates at the port or rail freight Transnet could ease the cost slightly, allowing growers the ability to move the fruit further than Durban. “Without Transnet coming on board it will never work as it will simply mean paying more money to transport fruit further. The aim is actually to work together towards a situation where everyone benefits.” Walters has undertaken to take the matter up with top Transnet officials saying rates between the different ports are not all that different, but that any discussion around the equalisation of rates is not a quick consideration and requires input from across the Transnet sectors. INSERT & CAPTION The ports are stressing all their assets in one location and not even sweating assets in other locations. – Andy Connell