While South Africa’s conventional reefer terminals are still operating, the container terminals in all the major export ports have come to a standstill as the national transport worker strike enters its third day.
The transport worker strike in South Africa has escalated further and is now threatening serious disruption of the country’s fresh produce industry. Another large national union has joined the strike and reports indicated that the unions have rejected the latest increased offer by the transport authority, Transnet.
“We will be facing serious problems if this strike continues until the weekend,” says Stuart Symington, Chief Executive of the Fresh Produce Exporters’ Forum. “Our information is that the conventional reefer terminals which are privately owned are still loading fruit in Cape Town, Durban and Maputo, but the container terminals are seriously affected by the strike.”
Mr Symington says while exporters have sufficient stock to supply their customers in the short term, a prolonged strike will cause disruption. With the conclusion of the grape export season, shipments from South Africa now mainly focus on apples, pears, citrus fruit, avocadoes and minor products such as Sharon Fruit.
He says the movement of empty containers from the ports to the interior are affected and this will have a knock-on effect on export operations. “There are two train loads of containers in Cape Town destined to the northern areas which is unable to move.”
The Citrus Growers’ Association (CGA) told its members that all the major ports have come to a virtual stand still. “Transnet have implemented contingencies for major commodities which has not included the prioritization of container activities. Containers are presently still being accepted at the Port Elizabeth and Cape Town terminals whereas we have been lead to believe there is no capacity available in Durban. Vessels are still entering and leaving ports where ships continue to operate at non Transnet operated terminals, albeit ship movements are restricted for the time being.”
The CGA says the fact that the break-bulk shipments continue undisrupted will reduce some of the pressure on the port capacity. “The cold stores in Durban, Port Elizabeth and Cape Town have spare capacity in the interim, but should the strike continues to the end of the week then capacity may become constrained.”
The CGA points out that because it is still early in the season, the fruit flow to ports still remains lower than during the peaks and the port cold stores normally have spare capacity at this stage of the season.
“At present the strike poses no real threat, there will be a concern regarding increased cost should it continue for the remainder of the week. Once the strike ends there will still remain a backlog of activities which may see services only stabilize over a period of time and growers should be guided by Exporters and Agents as to the port situation and stock movements."
The transport workers strike is a serious blow for South Africa less than a month before the start of the Fifa World Cup Finals which is due to kick off in Cape Town in June.
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