Key Takeaways
- HORTGRO, the representative body for apple, pear, stonefruit, and table grape producers in South Africa, is considering legal action against Transnet due to the ongoing underperformance of the Cape Town Container Terminal (CTCT).
- The CTCT’s underperformance is attributed to five structural failures: human resources and labour management, health and safety governance, equipment and infrastructure, operational process and execution, and communication and accountability.
- The financial impact of the CTCT’s underperformance is severe, with estimated losses exceeding R350 million and over R1 billion worth of fruit inventory at risk.
- Exporters have been forced to make costly logistics decisions, including rerouting containers to alternative ports, to keep fruit moving to overseas markets.
- The continued underperformance of the CTCT threatens exporter margins, rural jobs, and South Africa’s reputation as a reliable fruit supplier.
Introduction to the Issue
HORTGRO, the representative body for apple, pear, stonefruit, and table grape producers in South Africa, has warned that it may pursue legal action against Transnet, the state-owned freight logistics company, over the ongoing underperformance of the Cape Town Container Terminal (CTCT). The CTCT’s underperformance has been a persistent issue, with strong south-easterly winds disrupting operations during the current export season. However, HORTGRO argues that the scale and persistence of the problems point to deeper structural issues that cannot be blamed solely on adverse weather conditions.
Structural Failures at the CTCT
According to HORTGRO, the CTCT’s underperformance stems from five structural failures: human resources and labour management failures, health and safety governance failures, equipment and systemic infrastructure failures, operational process, execution and control failures, and communication and accountability failures. These failures have resulted in significant delays and congestion at the terminal, with over 1,688 containers backed up in cold storage and around R1 billion worth of fruit inventory currently at risk. The industry body has engaged constructively with Transnet for years, but despite this, productivity has failed to return to globally competitive levels, even after new equipment was introduced.
Impact on the Fruit Industry
The financial impact of the CTCT’s underperformance is severe and measurable. Estimated losses and exposure so far include more than R350 million in direct losses recorded at the start of the 2026 export season, with export volumes down 9% year-to-date by Week 2 of the season. Inspection volumes are up 37%, causing congestion, and around R1 billion worth of fruit inventory is currently at risk. Additionally, exporters have been forced to incur extra transport costs from diverting exports via Port Elizabeth, with around 900 containers rerouted through Durban and about 1,200 containers shipped via Walvis Bay. These figures exclude additional costs such as penalties for truck standing time, extra cold storage, agent fees, and rising quality claims.
Consequences of Continued Underperformance
The continued underperformance of the CTCT threatens exporter margins, rural jobs, and South Africa’s reputation as a reliable fruit supplier. HORTGRO warns that if the situation does not improve, it may be forced to pursue legal action against Transnet. The industry body has engaged "in good faith" with Transnet, but the persistence and scale of performance failures at the CTCT point to deep-seated structural weaknesses that extend beyond isolated incidents or external disruptions, such as adverse weather. The apple and pear export season is now in full swing, adding pressure to a system already under strain from earlier stonefruit and grape exports.
Conclusion and Future Actions
In conclusion, the underperformance of the CTCT is a critical issue that affects not only the fruit industry but also the broader economy. HORTGRO’s warning of potential legal action against Transnet highlights the urgency of the situation and the need for immediate attention to address the structural failures at the terminal. The industry body’s engagement with Transnet has been constructive, but the lack of improvement in productivity and the severe financial impact on exporters necessitate a re-evaluation of the situation. As the export season continues, it is essential that Transnet and other stakeholders work together to address the underlying issues and ensure that the CTCT operates at a globally competitive level to prevent further losses and damage to South Africa’s reputation as a reliable fruit supplier.
