May.9--THE first Cool Logistics Conference ever held in the southern hemisphere was warned that if Africa wanted to compete in global markets it had to cut supply chain costs.
    The warning came from Chiquita Brands advisor Mark Hassenkamp, CEO of Corvus Investments International, who said logistics costs in Africa are four times higher than elsewhere.
    He told the Cool Logistics Conference in Cape Town that changes applied not just in South Africa, but all over the continent - Cameroon, Ghana, Kenya, Mozambique, Senegal, Tanzania, Uganda and Zambia.
    The two-day international event attracted over 150 participants from 15 countries drawn from the global and regional perishable supply chain. Exporters, importers, retailers, air and ocean carriers, 3PLs, ports, cold store and land freight operators came together to discuss the continent's cold chain and perishable logistics outlook.
    There seemed to be rare agreement at Cool Logistics Africa between transport, logistics and perishable professionals - including fruit exporters united under the Fruit South Africa umbrella organisation - that change is now of the essence.
     Said GoReefers CEO Delena Engelbrecht: "We are playing catch up in South Africa and may have no more than seven years left before congestion and delays put the region on a back foot."
    Even in South Africa, logistics costs pitched at 13.5 per cent of GDP remain too high compared with the US and other main trading  partners, said Abrie de Swardt, managing director of Capespan Exports.
    Transnet National Ports Authority CEO Tau Morwe outlined the ZAR300 billion (US$38.7 billion) capital investment programme to improve South African ports and global logistical competitiveness. He also mentioned that Transnet was ready to engage more proactively with the private sector in the future in order to tackle operational constraints and to become generally more demand-driven.
     While reaffirming Maersk's commitment to South Africa as the southern gateway on the African continent, Maersk southern Africa chief David Williams expressed the hope that some of the 'occasional shocks' to the southern African supply chain will be avoided.
    Maersk said equipment shortage would not go away. According to the world's leading refrigerated container operator 44,000 FEU were scrapped in 2011. This year the figure is estimated to reach over 47,000 FEU and could reach nearly 70,000 FEU by 2016, based on a 13 year life span.
    Big Kenyan producer Sunripe director Hasit Shah, also vice chairman of Kenya's Shippers Council, said: "We need to integrate the small holder into the cold chain."
    Alex von Stempel, director, Cool Logistics Resources added: "Following the success of this first ever, we will be back in Cape Town next year to continue the dialogue and facilitate sharing of ideas, knowledge and practical solutions to improve Africa's perishable supply chain performance."

(Source:shippingazette)