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    Home > Food News > Food Articles > South Africa's Transnet has serious corruption and port congestion "threats" fruit exports

    South Africa's Transnet has serious corruption and port congestion "threats" fruit exports

    • Last Update: 2021-10-09
    • Source: Internet
    • Author: User
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    Recently, the South African Citrus Growers Association (CGA) expressed dissatisfaction with South African state-owned transportation company Transnet, saying that Transnet is the "biggest threat" to the South African citrus and fruit export industry
    .
     
    The South African Citrus Growers Association stated, “Transnet has been in a state of rapid decline in recent years
    .
    The business of the Port Authority and the terminal department has declined so severely that there are now large-scale delays in ships in South Africa’s ports
    .
    Despite the 2020 COVID-19 pandemic and civil unrest in South Africa As well as the July attack on the Transnet network system, the port's operations were suspended, but the current problems are far more than that
    .
    "
     
    According to data released by CGA, the output of Valencia oranges is expected to be 55.
    7 million boxes, and the current shipment volume is less than 60% (33.
    1 million boxes)
    .
    The export of various types of citrus was also affected for a while, and the total shipment volume is currently about 80% of the expected
    .

     
    According to CGA, Transnet has gone bankrupt due to large-scale corruption and does not have enough capital or access to external capital to maintain operations
    .
    The funds used to purchase and replace tugboats, pilot boats, helicopters, cranes and other facilities were not invested in this application
    .
    Even the maintenance of the existing equipment in the port has not been carried out normally, and failures continue to occur
    .
    It takes days or even weeks for ships to dock, and the waiting time for departure can even be as long as several months.
    This has led to many shipping companies withdrawing services from some ports in South Africa or jumping into ports
    .
    These conditions have affected the cold storage turnover.
    In the past few months, the port cold storage has been overwhelmed, and a large number of fruits have been backlogged for a long time before the final shipment
    .
     
      In mid-September, Transnet management arranged a meeting to discuss the current situation
    .
    Not only the South African Citrus Growers Association, but also the South African Raisin Association (SATI), the South African Agricultural Chamber (AGBIZ) and freight and manufacturing companies attended the meeting
    .
    Transnet's operating conditions are seriously damaging South Africa's agriculture and manufacturing industry, and even pose a threat to the local economy
    .
    The fruit export industry not only needs to pay additional logistics costs, but also faces quality problems due to long waiting times
    .
     
      In recent years, Transnet has embezzled 2.
    28 billion euros from the South African treasury on the grounds of purchasing electric locomotives and maintaining port equipment
    .
    According to Opera News, after the three major international rating agencies downgraded South Africa’s credit rating to “junk” this year, the South African government hopes to establish a new investment company to manage multiple state-owned enterprises including Transnet
    .


    Citrus Fruit Export
     
      The South African Citrus Growers Association stated, “Transnet has been in a state of rapid decline in recent years
    .
    The business of the Port Authority and the terminal department has declined so severely that there are now large-scale delays in ships in South Africa’s ports
    .
    Despite the 2020 COVID-19 pandemic and civil unrest in South Africa As well as the July attack on the Transnet network system, the port's operations were suspended, but the current problems are far more than that
    .
    "
     
      According to data released by CGA, the output of Valencia oranges is expected to be 55.
    7 million boxes, and the current shipment volume is less than 60% (33.
    1 million boxes)
    .
    The export of various types of citrus was also affected for a while, and the total shipment volume is currently about 80% of the expected
    .

     
      According to CGA, Transnet has gone bankrupt due to large-scale corruption and does not have enough capital or access to external capital to maintain operations
    .
    The funds used to purchase and replace tugboats, pilot boats, helicopters, cranes and other facilities were not invested in this application
    .
    Even the maintenance of the existing equipment in the port has not been carried out normally, and failures continue to occur
    .
    It takes days or even weeks for ships to dock, and the waiting time for departure can even be as long as several months.
    This has led to many shipping companies withdrawing services from some ports in South Africa or jumping into ports
    .
    These conditions have affected the cold storage turnover.
    In the past few months, the port cold storage has been overwhelmed, and a large number of fruits have been backlogged for a long time before the final shipment
    .
     
      In mid-September, Transnet management arranged a meeting to discuss the current situation
    .
    Not only the South African Citrus Growers Association, but also the South African Raisin Association (SATI), the South African Agricultural Chamber (AGBIZ) and freight and manufacturing companies attended the meeting
    .
    Transnet's operating conditions are seriously damaging South Africa's agriculture and manufacturing industry, and even pose a threat to the local economy
    .
    The fruit export industry not only needs to pay additional logistics costs, but also faces quality problems due to long waiting times
    .
     
      In recent years, Transnet has embezzled 2.
    28 billion euros from the South African treasury on the grounds of purchasing electric locomotives and maintaining port equipment
    .
    According to Opera News, after the three major international rating agencies downgraded South Africa’s credit rating to “junk” this year, the South African government hopes to establish a new investment company to manage multiple state-owned enterprises including Transnet
    .

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