Citrus Throughput Calculation

1

• Citrus Throughput Calculation

Volume Throughput Based on Dwell

• Citrus peak export production period in RSA
  weeks 20 39.
• This equates to 140 throughput days.

• Dwell ave. of 07 days throughput per slot of
  20.0
• Dwell ave. of 08 days throughput per slot of
  17.5
• Dwell ave. of 09 days throughput per slot of
  15.5
• Dwell ave. of 10 days throughput per slot of
  14.0
• Dwell ave. of 11 days throughput per slot of
  13.0
• Dwell ave. of 12 days throughput per slot of
  12.0
• Dwell ave. of 13 days throughput per slot of
  11.0
• Dwell ave. of 14 days throughput per slot of
  10.0

• Example
• Cold Store capacity of 5, 000 slots with ave.
  dwell of 7 days 100, 000 p.p.a div. 20 weeks
  5,000 p.p.w ave. 100 utilization.
• Cold Store capacity of 5, 000 slots with ave.
  dwell of 10 days 70,000 p.p.a div. 20 weeks
  3,500 p.p.w ave. 70 utilization.
• Cold Store capacity of 5,000 slots with ave.
  dwell of 14 days 50,000 p.p.a div. 20 weeks
  2,500 p.p.w ave. 50 utilization.

2

• Citrus Throughput Calculation

Average Revenue Loss Based on Dwell

• Using an average handling rate of R165.00 per
  pallet (incl 7 days storage)
• Ave. 7 day dwell 100 utilization R165.00 x
  100,000 plts R16.5m
• 100 of revenue capability
• Ave. 10 day dwell 70 utilization R165.00 x
  70,000 plts R11.5m
• 70 of revenue capability
• Ave. 14 day dwell 50 utilization R165.00 x
  50,000 plts R8.25m
• 50 of revenue capability

• Conclusion
• Revenue capability is directly associated with
  ave. dwell time of pallets.
• Revenue maximization occurs below 7 day dwell.
• Citrus industry ave. dwell time is 10 days,
  therefore revenue maximization on handling is at
  70
• Fixed racking systems operate at 85 of capacity,
  therefore fixed racking facilities operate at 85
  of the industry ave. of 70 revenue maximization
  per slot.
• Citrus dwell time must be reduced to maximize
  revenue capability per slot

3

• Citrus Throughput Calculation

Example of Revenue Loss

• Using an average handling rate of R165.00 per
  pallet (incl 7 days storage)
• Cold store capacity of 5,000 pallets handles
  60,000 pallets between weeks 20 39.
• At 7 days dwell revenue capability R16,5m
• 60,000 plts x R165.00 R9.9m
• Therefore achieved 60 of revenue capability

4

• Citrus Cold Store Infrastructure Requirement

Principle

• The citrus industry cold store handling rate is
  generally set with a 7 day free period
• Therefore cold storage principles should be
  measured at 7 days
• Thereafter general storage rates apply after the
  7 day period has expired
• The measurement of cold store infrastructure can
  then be based on throughput of 7 days

• Calculation per 1,000 Pallets Capacity
• 1,000 pallets per week 150 pallets per day in
  and out
• This implies that per 1,000 pallets capacity
• 5 Trucks per day should be offloaded
• 5 Trucks per day should be dispatched
• 8 Containers should be packed per day

• Container Bay Calculation
• With a 16 hour shift system and productivity of
  1 container loaded every 2 hours
• 1 Container bay per 1,000 pallets capacity (8
  containers x 2 hrs per container 16 hours)
• With a 24 hour shift system and productivity of
  1 container loaded every 2 hours
• 1 Container bay per 1,500 pallets capacity (12
  containers x 2hrs per container 24 hours)

5

• Citrus Cold Store Infrastructure Requirement

Example Cold Store with Capacity of 5,000 Pallets

• Intake 25 trucks per day should be offloaded
• 16 hour shift system 3 trucks every 2 hours
  (1.5 trucks per hour)
• 24 hour shift system 1 truck per hour
• Dispatch 25 trucks per day should be offloaded
• 16 hour shift system 3 trucks every 2 hours
  (1.5 trucks per hour)
• 24 hour shift system 1 truck per hour
• Containers 40 containers should be packed per
  day
• 16 hour shift system will require 5 functional
  container bays
• 8 containers per bay per day _at_ 1 container
  every 2 hours
• 24 hour shift system will require 3 functional
  container bays
• 12 containers per bay per day _at_ 1 container
  every 2 hours

6

• Citrus Cold Store Infrastructure Requirement

Racking Systems and Cold Store Layout

• Fixed racking systems
• Fruit fixed racking systems are typically
  Drive-In type systems
• Slot utilization estimated 70
• Warehouse space utilization 60
• Conducive for conventional type shipping bulk
  order picking for reefer ships
• Containerization focused exports are based on
  consignment type orders
• Fixed racking systems require advanced order
  picking ahead of time
• Requires large accumulation and pre-staging areas
• This type of system hinders productivity where
  high volumes of containers are packed
• Adds multiple handling of pallets
• Mobile racking systems
• Conducive for fruit industry
• Slot utilization estimated 90
• Warehouse space utilization 80
• High degree of efficiency achieved
• Stowage and retrieval of pallets done
  simultaneously
• Minimal handling of pallets
• Minimal floor space required