A number of former executives from Capespan Fruit Logistics (CFL), a division of Capespan South Africa,are understood to be working with fruit suppliers and freight owners on the formation of a new logistics company, a move which could establish a major rival to their former employer in time for the start of the new export season in October.
The Cape Town-based partnership will be led by CFL’s former general manager, Deon Joubert, who is expected to head up the new company while continuing in his role as the South African citrus industry’s special envoy in negotiations with the EU over the on-going citrus black spot dispute.
Joubert, who left Capespan earlier this year, confirmed the establishment of the new company, which will also involve a number of other senior specialists who left CFL at the end of June.
He also told Eurofruit that rival group Lonrho Logistics’ South African division was one of the partners set to be part of the new company. The others include a number of leading fruit cargo owners who will complete their contracts with the new company before the start of the new season.
“More information will be released from August onwards when the new company will start operating in order to conclude the arrangements for the season,” said Joubert.
During the past decade, Capespan South Africa’s logistics division built up a significant share of the country's fresh produce export business. Those senior executives who have now left the group are regarded as seasoned operators, something which could add significant value to the new company.
According to Joubert, the as yet un-named group will continue to enjoy strong relationships that have been built up with shipping lines during the past few years.
Observers say the move is a significant setback for Capespan Exports, the group’s South African export company, and a further indication of new alliances in the country’s fruit export trade being established on the basis of value chains.
These alliances typically include growers, exporters and freight logistics operators, giving growers and grower-exporters a greater say in the movement of their fruit and driven by the urgent need to reduce costs in logistics operations.
CFL reportedly handles more than 360,000 pallets of fruit per year, giving the company huge bargaining powers when it comes to dealing with shipping companies, and resulting in significant rebates. The new company is expected to take a significant slice of this business in future.
Article amended 3 July to include correct name of Capespan Fruit Logistics, which is a division of Capespan South Africa.
