Fruit industry loses R350 million this season due to Cape Town port’s operational failures

The deciduous fruit industry lost R350 million this season due to Transnet’s operational failures at the Port of Cape Town and is now contemplating taking Transnet to court. Transnet was boasting about all its improvements at the beginning of the season, but it seems that the plans the entity made to move away from being the worst port in the world did not help much.

The press release about these plans on the Transnet website no longer opens to a document, but only displays a picture, leaving one to wonder if that was just a mistake.

Elise-Marie Steenkamp, head of communication at Hortgro, says the deciduous fruit industry escalated its operational engagement with Transnet and is considering formal legal remedies due to ongoing operational failures at the Port of Cape Town.

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Sustained underperformance of Cape Town Port causing significant harm to export economy

“This follows sustained, material underperformance at the Cape Town Container Terminal (CTCT) since the start of the season, which continues to cause significant and measurable harm to the country’s export economy.

“Hortgro is currently quantifying the direct and indirect losses of income to producers, arising from unacceptable levels of unsound fruit in markets, discounted prices, additional expenses incurred to divert to other ports, and the forced utilisation of conventional vessels.

“While the industry recognises the commitment and effort of operational teams working under extremely difficult circumstances, the persistence and scale of performance failures at CTCT point to deep-seated structural weaknesses that extend beyond isolated incidents or external disruptions, such as adverse weather.”

ALSO READ: Cape Town port ranked the worst in the world

Cape Town port named worst in the world in 2024

The World Bank ranked the Port of Cape Town among the world’s worst-performing ports in 2024, and Transnet vowed to move away from this position. In October, it issued a press release stating that it was ready for the deciduous fruit export season. Durban now holds the title of the world’s worst port.

Steenkamp says the fruit industry engaged constructively and in good faith with Transnet and port management for many years, including a deliberate and disciplined commitment not to pursue media engagement while solutions were found internally.

“Despite these efforts, productivity did not recover to globally competitive or operationally reliable levels, despite substantial new equipment investment following more than a decade of capital underspend and readiness assurances provided ahead of the season. Global productivity standards range from 25–30 GHC (gross crane movements per hour), while CTCT remains below 20.

“The commercial consequences of this sustained underperformance are now severe, and the industry is exploring options to recoup lost income and cover additional costs.”

ALSO READ: Sustainability of Cape fruit farmers at stake due to ‘enormous’ port problems

Industry sustained losses of R350 million so far this season

Since the start of the 2025-26 deciduous fruit export season, the industry already incurred direct losses exceeding R350 million, with further exposure continuing to accumulate daily as delayed vessels arrive at destination ports, Steenkamp says.

“By Week 2 of the season, export volumes were down 9% year-to-date, while inspection volumes were up 37%, resulting in an abnormal build-up of approximately 1 688 containers in cold storage. This equates to an estimated R1 billion in fruit inventory currently at risk, excluding additional volumes already plugged in at back-of-port facilities.”

She points out that exporters were forced to divert volumes through alternative ports at extraordinary cost, including:

• A 140% increase in shipments via Port Elizabeth, with additional transport costs exceeding R133 million.
• The unprecedented routing of approximately 900 reefer containers through Durban.
• Approximately 1 200 containers via Walvis Bay, excluding penalties for truck standing time, additional cold storage, agent costs and rising quality claims.

“These compounding losses are eroding exporters’ margins, destabilising rural economies and placing South Africa’s hard-won reputation as a dependable supplier of high-quality fruit under increasing strain.”

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Five interlinked structural failures reason for Cape Town port failures

According to Steenkamp, the industry’s analysis confirms that CTCT’s underperformance stems from these five interlinked structural failures, rather than short-term operational shocks:

• Human resources and labour management failures.
• Health and safety governance failures.
• Equipment and systemic infrastructure failures.
• Operational process, execution and control failures.
• Communication and accountability failures.

These areas were formally documented and communicated to Transnet as part of the escalation process, with some positive results. However, Steenkamp says, for much of the stone fruit exports, this is too little, too late.

“Hortgro is firmly of the view that the challenges at CTCT can no longer be addressed by incremental fixes or reactive crisis management. What is required is a coordinated, transparent and expert-led transformation programme, supported by measurable commitments, strong executive ownership, strict accountability and private-sector operational involvement.”

ALSO READ: How Durban is clawing its way off the ‘world’s worst port’ list

Deciduous fruit industry still committed to supporting recovery of Cape Town port

She emphasises that the deciduous fruit industry remains committed to supporting a sustainable recovery at the Port of Cape Town. “However, it cannot continue to absorb losses of this magnitude without a decisive and durable shift in performance. The escalation of this matter underscores the seriousness of the risk now facing South Africa’s export economy, rural employment and international market credibility.”