Major investment supports logistics efficiency in Cape Town

Container facility provides back-of-port services

SOUTH AFRICA: With plans to ultimately expand the newly opened container yard in Salt River to 63,000m², Grindrod Ltd officially cut the ribbon on the United Container Depot (UCD) which will function as a back-of-port facility to help improve Cape Town Port logistics for importers and exporters.

“This is a milestone for Grindrod, for Cape Town and for South Africa,” Xolani Mbambo, CEO of Grindrod told guests this morning as he affirmed the company’s commitment to supporting trade in Africa.

Phase One of the investment in UCD makes 40,000m² available for containers, including the capacity to accommodate reefers to support agricultural exporters that rely on the integrity of the cold chain.

Plans to link the facility via rail to the port will further improve freight logistics which currently relies on truck haulage that has to negotiate road constraints.

Noting the close proximity to the port, Mbambo emphasised that the R60 million investment had been undertaken with the needs of shipping lines and customers in mind. “Customers demand efficiency and integration, and we are excited about the opportunity that this will unlock for seamless logistics solutions to exporters,” he said.

Built over the last five months, civil work included the removal of significant amounts of asbestos to comply with strict environmental regulations imposed by the City of Cape Town.

Delivering a keynote address at the opening, Minister of Agriculture, Economic Development and Tourism in the Western Cape Government Ivan Meyer, noted how a collaborative spirit between the team at Grindrod and Transnet had helped create a conducive environment for investment.

“Thank you for your mutual commitment to this vision,” he said as he underlined the importance of the agricultural export market to the province and to South Africa as a whole. Announcing plans to see exports triple from the Port of Cape Town by 2035, Meyer’s speech highlighted the need for investment in the logistics chain.

“We are the second biggest exporter of citrus in the world after Spain,” he said outlining recent talks with foreign leaders are underway to identify new markets. “We are not sitting still,” he said describing engagements with Austria, Canada, Germany and the Middle East.

PHOTO: CEO of Grindrod, Xolani Mbambo with Minister of Agriculture, Economic Development and Tourism in the Western Cape Government Ivan Meyer at the opening of Grindrod’s United Container Depot in Salt River, Cape Town.

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