Provincial govt says Cape Town port inefficiency dampening fruit exports, growth plans

Western Cape Minister of Agriculture, Economic Development and Tourism Dr Ivan Meyer has expressed concern about the slow progress being made at the Cape Town port in respect of a terminal turnaround strategy.

The slow pace at which the reforms are happening is having direct cost implications for the agriculture sector in the Western Cape, he states, following a recent visit to fruit producer Two-a-Day (TAD) in Grabouw.

TAD comprises more than 50 farms in excess of 3 300 ha in size, with total fruit production of about 200 000 t/y.

TAD MD Attie van Zyl estimates the total cost of inefficiencies at the Port of Cape Town to the Western Cape pear and apple industry to be just under R1-billion a year.

On a per-hectare basis, Van Zyl says the total estimated cost of a dysfunctional port for TAD’s farmers is about R26 000/ha.

This figure still does not reflect the full extent of losses in the agriculture sector, since TAD has not calculated the lost opportunities for growing into new markets.

“We are not seen as a reliable partner to the international market because we cannot guarantee delivery,” Van Zyl laments.

Meanwhile, Western Cape Department of Economic Development and Tourism project manager for logistics development Glen Steyn says the department has been working closely with the management teams of the Transnet National Port Authority and Transnet Port Terminals in the province, with “constructive discussions” having been held on digital planning platforms to reduce bottlenecks.

Meyer says an efficient Cape Town port will be needed if the province is to realise its goal of growing the Western Cape economy by 5% a year by 2035 and tripling the value of the province’s exports to R450-billion by the same year.