Perishable majors cut the middle man

Container volumes speak
for themselves – the greater
the volume the greater the
price bargaining power. And
that’s a key factor behind the
establishment of Link Supply
Chain Management, which
has just welcomed on board
impressive stakeholders in
Mouton Citrus and Du Toit
Investments.
Link was established in
January by Tru-Cape Fruit
Marketing, Ceres Fruit
Growers and Two-a-Day
Group, and the achievements
of the fledgling enterprise are
already evident.
“The purpose behind
Link was really for us to
take control of our shipping
destiny by cutting out the
middleman in order for the
benefits to accrue directly
to our shareholders,” said
Charles Hughes, CEO of Tru-
Cape.
The company, South
Africa’s major exporter of
apples and pears, is a major
container user and Hughes
tells FTW it was becoming
increasingly difficult to
handle its shipping because
it was “really in the hands of
a few.”
Hence Link taking control
of managing the group’s
shipping and bookings
planning, reduced costs and
a closer working relationship
with the lines.
Link uses a good number
of major shipping carriers
operating out of South
Africa, including Maersk
Line, MOL, MSC and PIL,
and Kuehne & Nagel for
shipping.
An advantage for
the Tru-Cape Group is
entire ownership by its
shareholders, namely the
growers, so all endeavours
undertaken are for their
ultimate benefit.
Hughes is clearly
enthusiastic about results to
date. “Link has worked well
for us after only ten months.”
Evidence of this was
already clear during the
crippling Transnet ports
strike in April when the
company was able to deploy
its own conventional ships
with on-deck container
capacity for moving vital
export cargo to off-shore
destinations via FPT, the
country’s major private
quayside operator active in
all of South Africa’s major
ports and also in Maputo,
Mozambique.
Hughes says it is evident
from international retail trade
trends that more and more
companies are keen to deal/
trade directly with the grower
“and the whole principle
behind that is to cut costs.”
Link Supply Chain
Management is headed by
well-known fruit logistics
expert, Gerhard van Heerden,
formerly with the Capespan
Group.
The company focuses on
sea and air transportation,
local and overseas inland
transportation, terminal
operations and clearing and
forwarding functions for
the products exported by
its shareholders, thereby
ensuring a cost-effective
‘Link’ between businesses.