Squeezed citrus exporters advised to seek alternatives to Durban

Despite the Citrus Growers’ Association (CGA) having apparently been persuaded by Transnet Port Terminals (TPT) that the Durban port construction work on the Pier 2 north quay would not impact on citrus fruit exports this forthcoming season, they are being misled, according to the Perishable Products Export Control Board (PPECB). Although the refurbishment of the Durban container terminal (DCT) berths commences in June, at the height of the citrus export season, TPT has assured the CGA that – thanks to advance planning – one consequence may be an improved service for citrus shippers, the CGA told its shippers (See FTW March 30 issue). New equipment and an increased number of reefer (refrigerated container) plugin points at Piers 1 and 2, and the transfer of general non-mainstring vessels to Maydon Wharf and the Point roll-on, roll-off (ro-ro) terminals, could be beneficial by reducing the general congestion into DCT, the CGA noted. But, in what he points out as a “looming challenge for all of us”, Stuart Symington, CEO of the PPECB, said that the Transnet quayside refurbishment would entail the decommissioning of one berth at a time for the next five years. And, in his opinion, the loss of port handling capacity at these berths will only be “partially compensated” for through the use of the Point and Maydon Wharf terminals. According to PPECB records, 53% of the total SA citrus crop was exported through the port of Durban in 2011. “We now believe that the citrus industry has estimated a 4% increase in SA citrus exports on last year, reaching a total of 98 million cartons for export in 2012,” said Symington. “If you add Zimbabwe’s and Swaziland’s citrus exports, the record total of citrus exports passing through SA ports for 2012 will be 103m cartons. “The port of Durban also exported record volumes of grain products during 2011 and all indications are that these volumes will continue flowing through Durban in 2012.” And the PPECB forecasts that the restricted container handling facilities at the DCT, and the Point and Maydon Wharf alternatives, will just not be able to fully cope with this rush. “PPECB thus recommends that exporters seriously consider investigating alternative ports to effectively and efficiently export their products,” Symington said. “The PPECB further recommends that exporters seriously weigh up the benefits of channelling a percentage of their fruit volumes through Maputo, Coega, Port Elizabeth or Cape Town ports.” But there is a major cost drawback to using these alternative ports, according to Peter Newton, director of fruit export agents, Seaboard, and a Cape-based authority on the shipping industry. The PPECB cautionary about the coming citrus season, he said, highlighted “the looming-ever-larger problem of containerised shipments out of Durban”. He pointed out that using other ports would mean extralong hauls, especially for citrus fruits, most of which originate from northern Kwa- Zulu Natal and Mpumalanga. But, he asked, who is going to pay for this extra movement? As the fault lay with Transnet’s port refurbishment, he suggested that it would “normally” be Transnet that should absorb the extra railage costs for those northern growers having to divert from Durban to Port Elizabeth/ Cape Town. “But,” he added, “as far as we know, not a peep on the subject.”