The Durban-based Grindrod
group has developed an
extensive network of logistics
and transport businesses
across southern Africa, supported
with a programme of development
investments, according to Dave
Rennie, CEO of Grindrod Freight
Services.
“Even with the slowdown of
growth in China, demand for African
commodities continues to grow,”
he told FTW. “The need, therefore,
for on-going partnerships between
government and the private sector
in developing the infrastructure and
capacity necessary to meet current
and future demand is paramount.”
A major part of this network
is the Maputo Port Development
Company (MPDC) – a partnership
between the Mozambican Railway
Company (CFM)
and Portus Indico,
comprising
Grindrod, DP
World and
local company
Mozambique
Gestores. The
concession period
now extends
until 2033, with
the option of an
additional 10
years of operation
after that.
Within the port area, Grindrod
is also the majority shareholder in
the Matola Coal Terminal (along
with Vitol), and an investment of
the equivalent of R8bn has been
allocated to expand the capacity
of the facility. Plans include land
reclamation, the construction of two
new berths, a stockyard and railway
infrastructure.
Grindrod is also investing R97 m
in the Maputo Car Terminal, which
it owns along with Hoegh, to expand
its capacity from 52 000 to 150 000
units a year.
Another major area of development
for the Grindrod group is rail.
Grindrod Rail provides a full
spectrum of rail services across
Africa, delivering both individual
and integrated rail solutions for
freight users in the region. It operates
in Botswana; Congo-Brazzaville;
DRC; Kenya; Mozambique; Nigeria;
Sierra Leone; SA; Zambia; and
Zimbabwe.
“Rail is the mode of transport
best suited to the movement of bulk
cargo,” said James Holley, divisional
CE of Grindrod
Rail. “The historic
underinvestment
in rail, together
with the
proliferation of
large mining
projects,
supported by
general economic
growth, has
provided a
favourable
environment for growth in the rail
sector in Africa.”
Grindrod recently enhanced its
operating capabilities by taking
over the operations of the NLPI
group on the North-South corridor.
This incorporates Beitbridge
Bulawayo Railways as well as an
access arrangement with National
Railways of Zimbabwe to the line
between Bulawayo and Victoria
Falls (approximately 800 kilometres
of track). Also RRL Grindrod
(Operations) operates various
shunting and short-haul contracts in
South Africa and Mozambique, and
heavy-haul main line systems similar
to those operating in Mozambique
(Sena line) and Sierra Leone
(Tonkolili line).
The group’s rail offering also
includes RRL Grindrod Locomotives
developing and manufacturing
locomotives specifically for the
African environment.
A recent takeover also offers
synergies in respect of track
maintenance and signalling
contracts, according to Holley. The
acquisition of Racec, an industry
leader in rail track engineering
and construction, he told FTW,
complements Grindrod’s plans to
provide signalling, communications
and rail technologies across the
African continent.
It has also recently acquired a 20%
shareholding in NWK – an operating
company that trades in agricultural
and agri-related products, resources
and services. NWK already has
business interests in Botswana,
Zambia and the Netherlands.
Grindrod Trading Holdings
has similarly just acquired a 20%
share in the 104-year old Senwes –
another agribusiness company in
SA, with retail and grain operations
throughout the central region of
the country as well as grain trading
offices in Malawi, Zambia and
Mozambique.
INSERT & CAPTION
Even with the slowdown of
growth in China, demand
for African commodities
continues to grow.
– Dave Rennie
CAPTION
Grindrod is investing R97 million in the Maputo Car Terminal to expand its
capacity from 52 000 to 150 000 units a year.
