At the International Fresh Produce Association’s annual Southern Africa Conference, held from 5-6 August at Century City Conference Centre, Transnet Group CEO Michelle Phillips highlighted the challenges and ongoing efforts to transform the state-owned port and rail authority. Addressing the delegates, she emphasized the need for significant changes to improve operations, stating, “There’s a lot that we need to do to turn the ship around.”
Fruit industry stakeholders working with Ms. Phillips and Oscar Borchards, the managing executive of Western Cape terminals, noted a shift in institutional culture at Transnet. They observed an increased urgency in addressing equipment shortages and minimizing time lost during shift change-overs. Despite these efforts, exporters expressed frustration with prolonged transit times, with a 45-day journey to Europe becoming the norm for some, such as an avocado exporter, compared to much shorter durations in previous years.
A recurring theme at the conference was the importance of recognizing positive developments alongside challenges. Ms. Phillips echoed this sentiment, cautioning against the negative portrayal of progress. She stressed that while the task of turning Transnet around is formidable, involving the private sector is crucial. “We want the private sector involved in our business, there’s no doubt about that,” she affirmed, clarifying that private sector participation (PSP) is not equivalent to privatization but a means to enhance operational efficiency.
Strategic Investments and Future Plans
Focusing on the fruit industry, Ms. Phillips outlined opportunities for collaboration, such as economically viable branch lines and the launch of the Belcon facility to alleviate port congestion. She emphasized the potential role of the private sector in cold-chain rail requirements, aiming for rail transport to be more cost-effective than road transport. “We work very closely with the associations, the customers, the shipping lines,” she noted, acknowledging the need for reliable supply commitments to maintain South Africa’s market share in global fruit exports.
Transnet’s commitment to equipment upgrades was another key point. Ms. Phillips announced significant investments, including new cranes for Durban Container Terminal and Port Elizabeth, rubber-tyred gantry cranes for Cape Town and Durban, and almost 100 new haulers for Nqgura and Cape Town. These efforts aim to prevent the operational challenges experienced in previous seasons, particularly in the Western Cape.
Ms. Phillips assured the delegates that Transnet is making substantial progress. “We are moving in the right direction. A number of very good men and women are working hard to do their duty towards the country. We will continue to do our best to meet and exceed your expectations,” she stated, reaffirming Transnet’s commitment to overcoming the hurdles and ensuring a more efficient and reliable logistics network for South Africa’s fresh produce sector.