CGA Logistics Overview - PPECB

CGA Logistics Overview

February / March 2021

Update on Ports, Infrastructure, Capacity

and Future Logistics Developments

Compiled by -

Mitchell Brooke, Logistics Development Manager

[email protected]

Map of Fruit Production in SA

Source: CGA

Northern region

exports through

Durban Port

Northern & Western

Cape region exports

through Cape Town

Port

Eastern Cape region

exports through PE

& Coega Ports

The 3 key citrus production and export corridors must be

considered independently for logistics purposes

When identifying

strategy focus areas,

corridor specific areas

and national specific

areas must be

considered.

Citrus Production Export Forecast by Corridor by Commodity (15kg Eqv. Cartons) – VFG Approved

Citrus Production Export Forecast by Corridor by Commodity (Pallets)

Northern Regions Corridor to Durban Port

Projected Northern Regions Citrus Export Production by Week by Commodity (15kg Carton Eqv.)

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46

Mill

ion

s

Regions Total 2020 Proj. Regions Total +3-5Years Grapefruit +3-5Years Lemons +3-5YearsNavels +3-5Years Soft Citrus +3-5Years Valencias +3-5Years

NOTES:1. Early and higher lemon

production,2. Grapefruit not expecting

significant change in production,3. Expect a later Navel production

run due to high planting of Cambria variety,

4. High growth in Late Mandarin with high planting of Tango and Nadorcott varieties,

5. Valencia production affected by lower output due to drought but expected to recover in future,

6. The overlapping production of Late Navels, Late Mandarins and Valencias is expected to create a production peak between weeks 26-34 annually,

7. This will place strain on the northern regions logistics.

Summary Northern Regions Corridor (1/2)

• Production peak week 26 to 34 annually,

• Transport demand could very well exceed supply – 1,800 truck trips per week to 2,300 per

week

• Reefer truck demand will increase as production of Soft Citrus (Nadorcott / Tango)

increases.

• Major arterial road upgrades in Durban N3, N2, M7 & Bayhead Rd could impact flow of trucks in

and out of Durban 2021 - 2025,

• Rail transportation from Limpopo to port is highly imperative – 10,000 FEU per annum,

• Cold store capacity in Durban is increasing (FPT, MFT/MWCS, DSCS, Somerset, ECS, GoChill,

PreCool)

• A big factor going forward will be productivity at the Durban Container Terminal,

• Reefer plug points will need to be ramped up and planned highly effectively,

• Durban cold storage facilities will need reefer staging areas to be devoid of DCT stack

dates/delays etc to increase throughput,

Summary Northern Regions Corridor (2/2)

• DCT north quay berth deepening project 6 years,

• Will impact main string services. E.g. MSC, SAFARI and FAX,

• Transnet proposes vessel diversion to MPT Point, which raises question iro congestion,

• SRS shipments from Durban must remain to sustain exports from the region,

• Management of increasing Cold Treatment shipments (E.g. Japan, S Korea, China, USA and

Philippines) which could double,

• Port developments –

• Container terminal truck booking system,

• Barge network could have significant benefit for the port especially MFT and FPT facilities,

• Port decongestion and infrastructure framework to 2050,

• Short distance rail transport between Cato Ridge / Hammarsdale to port,

• Grain Import/Export for 2021 is forecast at 3.5million tons.

• Truck flows to the grain terminals will need to be effectively managed to avoid congestion.

Durban Infrastructure Upgrades 2021-2025

DCT North Quay

Berth Deepening

Project

Salisbury Island

Infill

N2 / N3

Interchange

Upgrades

M7 & Bayhead

Road Upgrades

Citrus REEFER Rail Transport Strategy 2025

Musina (3 Sets = 1,300 FEU)

Tzaneen (5 Sets = 2,500 FEU)

Bela Bela (4 Sets = 2,200 FEU)

City Deep / Tambo Springs (3 Sets

= 3,600 FEU)

Import Reverse Logistics

TAMBO SPRINGS

1. Wash & PTI.

2. Pretrip & Calibration

3. Inland MT container feeder

19 Reefer train sets

required to transport

~13,500 FEU p.aNelspruit (1 Sets = 1,000 FEU)

EUROPE

MED

UK

RUSSIA

N AMERICA

FAR EAST

ASIA

INDIA

MIDDLE EAST

EC/WC (1 Sets = 1,500 FEU)

Klaserie (2 Sets = 1,000 FEU)

PreCool Cold Storage Development 2021

40KM

1. Cold Storage Facility.2. Container Depot –

1,500 Reefer +150 reefer plugs.

3. Rail Terminal.4. Truck Staging

Facilities.

Collaboration with PEPKOR, MRP and Ackermans• Inland transport

coordination.• Container cartage to

port coordination.• Use of NOR Reefer

containers during citrus season.

NATCOR Mainline

Citrus Growers Association - Support for a Durban Container Barge Operation

• Port decongestion initiative – trucks off the road network,

• Port container handling facilities connected directly by the barge network at all key areas of the port – Point MPT, Pier 1, Pier 2, Bayhead, MW MPT, MW13 & FPT,

• Reefer depots at Point MPT, MW13 & Bayhead can feed full/empties – MFT, FPT & Bayhead,• Multi user reefer cleaning, inspection & storage facilities.

• Development and expansion of Container Depots and Container Freight Stations along the barge network areas in the port,• No truck should be required to handle a container on the barge

network, unless absolutely necessary.

• Moving towards a more expansive, productive, efficient and cost effective port container handling network.

MT Container Depots

Port Condensed Container Freight

Station Zones

Proposed Reefer Container Depots

MFTMW 13

FPT

MW MPT

BAYHEAD

PIER 2PIER 1

POINT MPT

Container Barge

Imagine if a container could be offloaded from a vessel at a Deep-sea terminal and be routed to acontainer depot, then a freight packing facility and back to a Deep-sea terminal (vice versa) withoutleaving the Durban port precinct…

Eastern Cape Regions Corridor to PE / Coega Port

Projected Eastern Cape Regions Citrus Export Production by Week by Commodity (15kg Carton Eqv.)

0,0

0,5

1,0

1,5

2,0

2,5

3,0

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46

Mill

ion

s

Regions Total 2020 Proj. Regions Total +3-5Years Grapefruit +3-5Years Lemons +3-5YearsNavels +3-5Years Soft Citrus +3-5Years Valencias +3-5Years

NOTES:1. Early and higher lemon

production,2. Grapefruit not expecting

significant change in production,3. Expect a later Navel production

run due to high planting of Cambria variety,

4. High growth in Late Mandarin with high planting of Tango and Nadorcott varieties,

5. Valencia not expecting significant change in production,

6. The overlapping production of Late Navels, Late Mandarins and Valencias is expected to create a production peak between weeks 15 to 26 annually,

7. This will place strain on the EC regions logistics.

Summary Eastern Cape Regions Corridor

• Production peak week 15 to 25 annually,

• Transport demand could exceed supply – 960 truck trips per week to 1,500 per week,

• Container rail project could be implemented between EC – Deal Party to CPT & WC – Belcon to PEL/Coega ,

• Cold store capacity could be a challenge in peak season although capacity is increasing,

• Addo Cold Storage & PE Cold Storage can increase capacity,

• APLI Coega new build due for completion 2021 season.

• EC region can transport to Cape Town port if required where there is excess capacity.

• A big factor going forward will be productivity at NCT & PECT,

• NCT plagued with wind delays therefore wind bound reefer stacks imperative,

• PECT container terminal will be required to remain in tact for the time being,

• Service diversion from PECT to NCT will add to reefer plug demands and high gate flows.

• DCT north quay berth deepening project 6 years,

• Vessel delays could be incurred in Durban impacting the EC region.

• Services from EC to NWC/UK/Russia direct should continue annually.

• SRS shipments from EC must remain to sustain exports from the region.

• NB – SUGGEST ALL STAKEHOLDERS IN EC SUPPLY CHAIN JOIN THE PORTS WHATTSAPP GROUP

Western & Northern Regions Corridor to Cape Town Port

Projected Western & Northern Cape Regions Citrus Export Production by Week by Commodity (15kg Carton Eqv.)

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

1,8

2,0

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46

Mill

ion

s

Regions Total 2020 Proj. Regions Total +3-5Years Grapefruit +3-5Years Lemons +3-5YearsNavels +3-5Years Soft Citrus +3-5Years Valencias +3-5Years

NOTES:1. Early and higher lemon

production,2. Grapefruit not expecting

significant change in production,3. Expect a later Navel production

run due to high planting of Cambria variety,

4. Very high growth in Late Mandarin with high planting of Tango and Nadorcott varieties,

5. Valencia not expecting significant change in production,

6. The overlapping production of Lemons, Early Navels, Satsumas, Clementines & Novas will cause an early season peak in week 24 to 28,

7. A second production peak is expected due to overlapping production of Late Mandarins. Late Navels and Valencias in week 34 to 38.

Summary of Western & Northern Cape Regions Corridor

• Production peak week 24 to 28 and 34 to 38 annually,

• Transport demand could exceed supply – 550 truck trips per week to 850 per week

• Reefer truck demand will increase as production of Soft Citrus (Nadorcott / Tango)

increases.

• Cold store capacity is not considered to be a challenge in the Western Cape during Citrus

season,

• A big factor going forward will be productivity at CTCT & CPT MPT,

• CTCT RTG ramp up in place / Planning techniques being introduced;

• CTCT plagued with wind delays therefore wind bound strategies are imperative,

• CPT MPT Mobile Harbour Cranes are required to be replaced to service AMEX vessels.

• DCT north quay berth deepening project 6 years,

• Vessel delays could be incurred in Durban impacting the WC region.

• SRS shipments from Cape Town must remain to sustain exports from the region.

Citrus Production Export Forecast by Ship Mode (Pallets)

Projected Export Volume of Reefer Containers by Load Port (FEU Containers)

Projected Export Volume of COT Reefer Containers by Load Port (FEU Containers)

Strategy Summary +3 Years (1/2)

CGA -

• Increased information collection and distribution,

• PPECB, Agrihub, eCert & Phytclean,

• Port productivity statistics and vessel schedules (Linernet),

Transnet / TPT / TFR / TNPA -

• TPT Cargo Connect development,

• TPT truck bookings system development,

• TPT equipment and port productivity – required ave of 25 GCH,

• TPT optimal reefer plug capacity at all terminals,

• TNPA Durban port decongestion development,

• Durban barge development aligned to MFT & FPT,

• TFR rail transport development – EC/WC, Limpopo & Hammarsdale / Cato Ridge,

• Weekly operations telecoms Transnet, Shipping Lines & Logistics Stakeholders,

Strategy Summary +3 Years (2/2)

Maputo Port Development –

• Development of cold store infrastructure and rail connectivity to Maputo, aligned to

shipping routes,

Shipping Lines –

• Evaluation of reefer container supply during peak citrus season,

• Evaluation of vessel reefer capacity to emerging and growing markets,

Cold Treatment Shipments –

• Evaluation of DALRRD resource requirements per region,

• Evaluation of infrastructure & equipment requirements,

• Implementation of efficiency drivers for COT shipments,

Implementation of Corrective Measures for Cold Treatment Shipments –

• Uniform Pre-Cooling to minus 0.8 DegC,

• Container USDA probes on temp prior to departing cold store facility.

CGA Logistics Overview

February / March 2021

Thank You / Dankie / Ngiyabonga

Compiled by -

Mitchell Brooke, Logistics Development Manager

[email protected]