This is a pivotal time for the relationship between Spain and Britain, with the devaluation of sterling and Brexit uncertainty piling unwanted extra stress on the already challenging fruit and vegetable trade.
With the start of the main Canary Islands tomato season this week, the timing couldn’t be better, therefore, to underline the long-term commitment of the two sides with the opening of a new Canary Islands Fruit Terminal at the Port of Southampton.
The £8.3 million investment by Associated British Ports sees the current facility upgraded and expanded with a view to both improving the site for present customers and attracting new business, and the spend has been backed by a 20-year commitment by Solent Stevedores to operate the facility.
The site now features expanded temperature capability and chilled storage capacity, enabling it to handle a wider variety of chilled produce, as well as temperature-controlled high-value products. The main building has been completely upgraded, with energy-efficient lights and rapid-action doors on both the quay and road sides, while a brand new energy-efficient cooling system enables operators to run different temperatures in different parts of the building.
New handling equipment includes mobile harbour cranes that can move both pallets and containers at “market-leading levels of productivity”, and this is backed by larger pallet cages and a fleet of high-capacity forklift trucks, with the latter paid for by Solent Stevedores.
Additional storage compartments have been installed to segregate fruits, and that’s not the end of it either, with ongoing work – due for completion in February – to create a packhouse facility to process the produce that is handled in the terminal.
“Overall the upgraded facility delivers additional capacity and produce-handling flexibility to the latest environmental and efficiency standards,” said Stuart Cullen, chairman and chief executive of Solent Stevedores at last week’s opening. “This will enable Southampton to better serve our existing customers and deliver an expanded offering to the market to bring new customers to the port.”
A well-attended ribbon-cutting event featured a delegation from the government of the Canary Islands, underlining the value of the trade route between the two countries. Putting the importance of the relationship into figures, president Fernando Clavijo pointed to the fact that UK importers help support 700ha of plantations on the islands, with 4,500 jobs in tomato production and 7,000 working indirectly in the business.
For suppliers, it offers a boost to a strategically important route into the UK market. José Juan Bonny, president of exporters’ federation Fedex, describes the upgraded facility as “a big improvement” and one that will give trade a lift. “It’s been 25 years since the terminal was first built, and it needed a renovation,” he says. “We are very satisfied. It’s very important because we need to unload the ships as soon as possible.”
For supplier Fortuna Frutos, one of the key benefits of the new terminal is the fact that they and Victoria Trading will have a dedicated packing area, giving the opportunity to cut out internal cost by reducing the need for sub-contracted packers. “It’s a different way to exploit our expertise to consolidate and pack as much at source as possible,” explains director José Hernandez. “The new facility is fantastic and shows the commitment from Solent Stevedores and ABP.”
Jota Cabrera Bonny, export manager at tomato and cucumber producer Bonny, describes the new terminal as “a great investment” and one that underlines the commitment of Canaries growers to the UK market. For Bonny, using the facility adds an extra layer to the company’s proposition, which includes the recent switch to 100 per cent clean energy in its production thanks to the installation of wind turbines and solar panels on its farms in the Canaries. It is also trialling 16-20 new varieties to ensure the market receives the best-tasting and longest-lasting product possible.
Producers are upbeat about the new Canary Islands tomato season too, describing volumes as similar to last year and quality as good.
Brexit, of course, remains a topic front of mind. Fedex’s Bonny says there is still no certainty over what will happen but insists they will ultimately need to see higher prices to compensate for the lack of income from the collapse of sterling. That view is echoed by Hernandez, who says: “Brexit has caused a lot of uncertainty and it’s made negotiations more difficult with customers, not just because of the exchange rates but because of the longer-term supply contracts. It takes time to digest the situation and things change fast, but we do need to see a higher price. I imagine at some point there will be some increases.”
For Solent Stevedores and ABP, the new terminal not only helps show its commitment to the trade, but also gives it the potential to handle more fruit beyond the traditional Canaries window, attracting valuable extra business. As Solent director Richard Jennings points out, the upcoming creation of extra amenities on-site such as a canteen, changing facilities and QC rooms will only help.
It’s refreshing to see this kind of investment at a time of wider instability, and will help reassure all parties that this is one trade route which has a sure and promising future.
