A more proactive approach to diverting between 10% and 20% of cargo through alternative ports before congestion builds could help ease pressure on the Port of Cape Town during peak export seasons, according to Western Cape Department of Economic Development and Tourism Deputy Director-General Ilse van Schalkwyk.
Speaking to Freight News at an event hosted by Exporters Western Cape, she said weather disruptions remain a major operational constraint affecting vessel movements and contributing to delays across the logistics chain.
“Especially during our peak seasons for citrus and table grapes, our exporters are very exposed.”
Van Schalkwyk said South Africa’s ports should be viewed as a single logistics system with provinces working together to determine how cargo could be distributed more evenly.
“If I can’t access the Port of Cape Town, I need to be able to move my cargo through Ngqura or Gqeberha, particularly if the cost is almost the same. Our exporters need to be able to make that decision sooner rather than later. You have to be able to decant cargo and relieve the pressure before reaching the point where it is sitting in the port and rotting because wind disruptions prevent it from being moved. We are looking at a different approach where decisions are made earlier to move perhaps 10% to 20% of the cargo through other ports.”
She said the solution extends beyond the port and requires an intermodal approach incorporating rail and road.
Van Schalkwyk warned that the Belcon rail terminal is also under pressure and a second terminal is needed.
Reducing logistics costs remains a top priority, particularly as the Western Cape pursues its goal of tripling provincial goods exports, she added.
“We understand that we have to reduce the cost of logistics to ensure our exporters are competitive but you have to look at this from a systems perspective. There is no magic bullet when it comes to the cost. The crisis in the Middle East and the impact on fuel prices show that.”
Van Schalkwyk said improving efficiency across the logistics system is the best way to reduce costs over the long term.
“If our logistics system is more efficient, we can move greater volumes at a better price. That is key to growing our exporter base in the province.”
