The Citrus Growers Association of Southern Africa (CGA) has asked the government to speed up ports and rail reforms in a bid to deliver on commitments made by President Cyril Ramaphosa during his State of the Nation Address (Sona) last week.
In a statement on Tuesday, CGA said it hoped that the parliamentary debate on Sona can generate some much-needed further urgency on logistics reform after Ramaphosa highlighted the repositioning of entities like Transnet to provide world-class infrastructure while enabling competition in operations.
“2025 must be a year of action on the logistics front. There seems to be a general assumption that the logistics crisis is over, but we are not out of the woods yet,” said Dr Boitshoko Ntshabele, newly appointed incoming CEO of the CGA.
“We look forward to working with government to achieve the inclusive economic growth that only functional logistics can unlock.”
CGA said that the establishment of a dedicated State-Owned Enterprises Reform Unit was also highlighted by Ramaphosa in his Sona.
“However, many reform initiatives have been launched by the government in the past, to no or minimal effect. The citrus industry as an employer of 140 000 people on farm level alone hopes sincerely that the renewed commitment to reform will establish meaningful change.”
CGA added that it is essential for the citrus industry that the efficiency of the container terminals at our ports improve.
It said the only long-term way to achieve this is through public-private partnerships that the government has committed to enacting.
According to CGA, citrus production is on an increased trajectory, meaning that over the next seven years it is possible for us to boost our exports from 165 million 15kg cartons to 260 million cartons.
The CGA said that this would not only create 100 000 new jobs but also boost our economy with much-needed foreign exchange revenue for the fiscus.
The organisation also acknowledged the progress made at the ports by Transnet as Ramaphosa stated, “new cranes and other port equipment are being commissioned to speed up the loading and unloading of cargo and reduce waiting times for ships.”
However, the CGA said container terminal efficiency remained low, and the expected increase in citrus production will place further pressure on the ports - pressure they must be able to handle if our export economy is to gro
Ntshabele said Ramaphosa also highlighted the publication of the new Transnet Network Statement in December, which will enable private rail operators to access the freight rail system.
“This has the potential to be a moment of historic importance. Urgency on the rail front will also boost our industry, as 90% of all citrus is currently moved to ports via roads, a more costly form of transport,” he said.
“In his speech, president Ramaphosa also underscored that through opening new export markets for products we can significantly expand our agricultural sector.”
New and expanded access to markets in Asia and the United States will not only benefit the local economy, the CGA said, but the consumers in the destination countries as well, as South African citrus is widely valued for its counter-seasonal supply of quality citrus.
South Africa is the second largest exporter of citrus in the world. The CGA said the industry passionately shares Ramaphosa’s stated goal, which is to “ensure that South African minerals, vehicles and agricultural produce reach international markets, securing jobs and earning much needed revenue for our fiscus.”
BUSINESS REPORT