Industry organisation the Citrus Growers' Association of Southern Africa (CGA) welcomes the government authorisation of a R51-billion guarantee facility for State-owned Transnet, and the progress the State-owned enterprise has made with official private sector participation (PSP) processes.

The citrus industry hopes the recent series of PSP announcements signal a turning point in how South Africa's logistics landscape functions, the CGA says.

“The 2025 citrus season is approaching its peak weeks, with oranges now starting to move to export markets.”

The CGA says it appreciates the preparatory steps taken by Transnet Port Terminals over the past few months, which includes securing 256 additional resources on fixed-term contracts; conducting maintenance on all reefer, or refrigerated shipping containers; adding plug points; and adding 100 pieces of new equipment, it says.

Shifting produce in an efficient and timely way is essential to the profitability of the citrus industry. The season has started smoothly, but the true test will be the peak over the next two months, says CGA CEO Boitshoko Ntshabele.

“There are challenges on the horizon, but if all goes well, Southern Africa is expected to export 171.3-million 15 kg cartons of citrus, according to the latest figures,” he says.

Transnet's recovery includes a significant element of “strong collaboration with customers and industry partners”, Transnet has said.

Growth in the export economy requires collaboration between Transnet and private players, the CGA says.

“The only way inefficiencies in logistics and related costs can be avoided in the long term is through large-scale PSPs at the ports and in the rail network.

“While recent policy shifts towards PSPs are promising, the citrus industry is yet to experience the benefits of operational PSPs. Partnering with business brings faster upgrades, specialised knowledge, a performance-driven culture and constant innovation, which almost immediately stimulates employment growth,” it states.

The progress made over the past few months in opening the rail network to private players is encouraging. Urgency on this front, as well as ensuring attractive options for the private sector, will unlock growth opportunities in the citrus sector, which currently only moves 10% of its citrus to the ports by rail, says Ntshabele.

Further, although some PSP projects at ports are moving forward, the PSP to upgrade and manage the Durban Container Terminal Pier 2 is still tied up in a court battle.

“We appreciate Transnet's commitment to PSPs, as we look to achieve our industry's goal to create 100 000 jobs by 2032, and we hope the momentum is maintained and that more projects are urgently pursued," he says.