Recently formed logistics organisation The Logistics Group (TLG) has said that recent investments in capacity and capability will allow it to expand its offering in the fresh fruit logistics sector.
Retiring CEO of TLG, Dawie Ferreira, said the group is ready to expand its offer to the fresh fruit export sector where and when this is required.
“The formation of our new group will not affect our present services to the fresh fruit sector at all,” he explained. “We are fully committed to serving the sector and are in a position to expand our offering where the industry requires this.”
There has been some recent debate about the ability of export infrastructure to handle the current rampant expansion in fresh fruit exports.
This is particularly relevant in the citrus sector, where exports are expected to rise from around 132m cartons to more than 160m cartons by 2025. A large percentage of this rise in exports is expected to flow from the northern and eastern production regions, affecting activities via the ports at Port Elizabeth and Durban.
In addition, recent agreements with China will make provision for bulk reefer shipments, and this will involve facilities within the TLG Group.
Ferreira said that recently completed investments in capacity at its facilities in Durban would enable the group to handle more sterri-related fruit, which would be shipped to China if more break bulk reefer shipments were introduced.
“We are also participating in discussions over greater use of the port in Maputo, but in this case shipments are likely to be in containers only.”
The Citrus Growers’ Association (CGA) recently asked the South African government to play a more meaningful role in resolving infrastructure problems instead of pouring more money into loss making enterprises.
“As a result, Durban port, which handles the bulk of southern African citrus, is creaking.,' warned the CGA's Justin Chadwick in a letter to growers. 'The infrastructure is badly in need of an upgrade, and new equipment is sorely needed. In addition, the port operations lag international norms in terms of port efficiency. One of the points in our six-point plan is to improve efficiency of the port.'
Chadwick said other elements included making greater use of Maputo port, increasing the volume transported to Durban by rail, increasing capacity of coldstores in the Durban port precinct, as well as investment in hubs where cargo can be accumulated and railed into the port, and the use of IT to assist in improving efficiencies.
TLG’s facilities in Cape Town will continue to play a key role in the success of the Western Cape’s export programme to the US.
“We are ready to continue to support the Western Cape growers from our terminal in Cape Town and will also, as in the past, in the early grape season, assist with reefer shipments when this is required to move volumes in time for the Christmas market in Europe,' Ferreira continued.
While Capespan’s involvement in logistics has changed significantly in the post-regulation era as far as fresh produce is concerned, expanding its capacity and capabilities will certainly be welcomed by the fresh produce sector.
Feirrera will soon retire and will hand over to Anton Potgieter who will take TLG forward into the future. At the same time Capespan stressed that its global fruit production and marketing businesses remain its core focus.
“The logistics businesses are consolidated into TLG to ensure a focus-based approach to increased logistical services levels across a broader spectrum of product capabilities and capacity,” outlined Tonie Fuchs, managing director of the Capespan Group.
