This document describes a Final Year Project (BPJ 420) required by the University of Pretoria
in partial fulfilment of Systems and Industrial Engineering. This report describes the solution
to an identified problem encountered by the South African Citrus Industry with the
assistance of Citrus Growers Association (CGA). This project entailed a thorough study of
the citrus supply chain, facility and capacity planning of cold storages used for citrus exports
through the Durban Harbour.
The South African Citrus Industry is currently facing a phytosanitary risk of False Codling
Moth (FCM) that might prevent the industry gaining further global market access. FCM is
only detected in Africa and stricter bio-security protocol measures imposed by the
European Union (EU) can prevent further exports to their markets. South Africa exports
almost fifty million citrus cartons to the EU, which approximate 40% of all citrus fruit per year
at an estimated amount of R15.7 billion in 2015/2016 based on exporting prices (DAF,
2016). Current prevention measures are in place that includes: a System Approach (Moore
and Hattingh, 2013) and Nuclear-based Sterile Insect Technique (SIT) (IAEA, 2017), although
research has shown that cold sterilisation is the best FCM prevention measure.
The aim is to identify facility solution required that would ensure that South Africa meets the
regulations imposed by the European Union (EU) to prevent FCM from spreading to their
countries. Northern South African farms, packhouses, cold storages in Durban and Transnet
Durban Port Terminal were visited to obtain information. The data acquired is used to
adhere to cold sterilisation protocols when identifying current cold room facilities. The cold
storages are divided into two types either a pre-cooling or forced air-cooling (cold
sterilisation treatment) chamber. The capacity is determined with three conditions:
Prototype model 1: Current citrus production 2017
Prototype model 2: Forecasted demand for 2020
Prototype model 3: Forecasted demand for 2020 including all fruit volumes exported to
Industrial Engineering (IE) techniques are used to approach, analyse and develop a possible
solution. A Process Flow Diagram is drawn to illustrate key role players in the citrus supply
chain. A Method Study portrays the detail of the citrus processes compiled in the Literature
Review. The focus of this project would entail a thorough Facility Planning analysis of the
cold storage operations in Durban. This study determined the current 38 300 pre-cooling
and 13 350 forced-air cooling capacity. The CGA provided 2020 forecasts of citrus export through Durban Harbour. The forecasts
are based on tree census data, bud-wood sales, land availability, climatic conditions and
historic production since 2012.
It is calculated for Prototype Model 2 that in 2020 the demand will be 45 543 precooling
and 15 404 forced-air cooling pallet slots. The additional capacity required is 1085
pre-cooling and 1416 forced air-cooling facilities. This is a moderate growth expected
Prototype Model 3 is calculated if the European Union imposes stricter protective
measures with 45% extra volumes to undergo cold sterilisation treatment in 2020. It is
calculated that the demand to cold sterilise the extra volumes will be 43 602 forced aircooling
pallet slots and pre-cooling facilities will be in excess of 21 710 pallet slots.
However these facilities can be converted into forced-air cooling facilities to accommodate
space restrictions in the CBD. The required 29 614 forced air-cooling pallet slots can either
be transformed in current cold storages or new cold storages should be built in Elangeni,
Kwa-Zulu Natal an Industrial Zoned area.
The cost involved to facilitate this forced-air cooling chambers to either convert current
facilities or develop new would amount R531 129 915.00. A Trade-off Analysis is used to
compare the current and additional cost per 15 kg carton to undergo cold sterilisation
treatment. An increase per carton of R18.28 would accumulate to a total of R519 116
500.00 additional annually for all citrus fruit exported to the EU.
In conclusion of this Final Year Project is the result subjective to condition. The current
forced air-cooling facility in Durban will not accommodate cold sterilisation treatment for
extra volumes in 2020 if the European Union enforces stricter protocols. The increased
overheads involved is not a viable solution and would be in the best interest of the South
African Citrus Industry to prove different measures with research done to prevent False
Codling Moth without imposing cold sterilisation treatment.
Mini Dissertation (B Eng. (Industrial and Systems Engineering))--University of Pretoria, 2017.