Transnet springs surprise cold store move

TRANSNET Port Terminals has taken the fruit storage and handling sector completely by surprise with its intention to build a cold store in the port of Cape Town. Even more disquieting for FPT, still the major quayside fruit handler in the Mother City and other ports, is the location of the new facility to be sited right alongside it, at E-berth in the multipurpose terminal. FPT has been facing an uphill battle to secure sufficient volumes as fruit in containers continues to dominate. This was a major reason for the Capespan subsidiary deciding to diversify operations two years ago to now handle everything from cement to rice, sugar, sand, maize, steel and wood. That containerisation is fast becoming the preferred mode is borne out by the fact that close to one million pallets of fruit were shipped in containers in 2007, as against some 180 000 pallets in the conventional mode. A five-year perusal of the inroads by containerisation in Cape Town is even more revealing: In 2001 FPT was handling about 437 000 pallets in Cape Town but this has dropped to 230 000, impacting so severely on the company that about half of the 80 Cape Town staff had to be retrenched. Admitting to being extremely “perplexed” and “concerned”, FPT MD Danie Maartens told FTW: “We don’t know what it is about. “Our fruit volumes are down drastically so why is Transnet developing an identical facility in a declining market? It just does not make sense.” Also of concern to Maartens is that there was no prior consultation by Transnet with role players over the proposed development. Maartens says he had to ask Transnet’s Cape Town property manager Johan Claassen what was going on at E-berth when he noticed workers on site. Even though information to hand is sketchy, it seems that a 3 800-pallet cold sterilisation treatment store is being developed. This facility could cost in the region of R30 million. The FPT cold storage facility, in contrast, accommodates 8 000 pallets but Maartens points out this is only fully utilised at the height of the citrus and deciduous seasons. This begs the question: If FPT is finding it hard to obtain volumes for its quayside facilities due to containers being stuffed inland at source, how is TPT going to pull it off? Nosipho Damasane, Transnet’s general manager for new business, said: “Unfortunately we are at a very sensitive part of negotiations so we cannot comment.” She stressed however that the matter was “not cut and dried” and that a full media statement would be released during the first quarter of the year.