https://www.miningweekly.com
Africa|Coal|Container|Environment|Financial|Grindrod|Logistics|Ports|PROJECT|Projects|rail|Services|Terminals|Operations
Africa|Coal|Container|Environment|Financial|Grindrod|Logistics|Ports|PROJECT|Projects|rail|Services|Terminals|Operations
africa|coal|container|environment|financial|grindrod|logistics|ports|project|projects|rail|services|terminals|operations

Trust, patience see Maputo port yield record results – Grindrod

25th August 2023

By: Irma Venter

Creamer Media Senior Deputy Editor

     

Font size: - +

The Port of Maputo is reaping the results of an $800-million investment that has taken the port from handling five-million tons overall in 2007, to a record 27-million tons last year, says Grindrod CEO Xolani Mbambo.

“In the recent five-year period we have invested $200-million.”

Mbambo’s comments come as the Maputo port again reported a volume increase of 30% in the six months to end-June, this while South Africa’s rail and port corridors failed to meet demand.

Commenting on Grindrod’s financial results for the half-year period, Mbambo emphasised that it took patience as a private sector investor, and trust from the Mozambican government in the private sector, for private-sector participation projects such as that at the Port of Maputo to yield results.

Ports, terminals and logistics operator Grindrod is a shareholder in the Maputo Port Development Company, along with global logistics specialist DP World, the State-owned rail operator, CFM, and other local partners. 

Mbambo noted that there was growing appetite in Africa to invite private players to participate in traditionally State-owned logistics assets, and particular so in East Africa.

He cited the example of the recently awarded Lobito corridor concession (not to Grindrod), running from the Democratic Republic of the Congo to Angola.

“The opportunities are there, in general.”

Mbambo regarded East Africa, which was currently recording good economic growth, as an “exciting region” for the group.

Mbambo acknowledged that Grindrod, along with a European partner, had been included in the top-ten list for the recent 25-year Durban Container Terminal concession, which was ultimately awarded to International Container Terminal Services Inc in July.

However, he said that Grindrod’s European partner “could no longer stomach the risk they perceived” associated with the South African project, despite Grindrod’s insistence that it was familiar with the environment and the associated challenges.

Grindrod on Friday reported a 32% increase in revenue from core operations for the six months under review, compared with the same period last year, to R3.8-billion.

Revenue from noncore operations, which were proving more challenging to dispose of than anticipated, stood at R7.2-billion.

Trading profit from core operations was up 16%, to R1.1-billion.

Grindrod had the necessary “war chest to chase opportunities”, noted Mbambo, expressing the hope that those opportunities would come “as quickly as possible”, before Grindrod was accused of not putting its balance sheet to good use.

He said the company had a R1.9-billion project pipeline, running from 2023 to 2025 and ranging over a number of commodities, including expanding its magnetite-handling capacity.

Grindrod also aimed to diversify from one of its main revenue earners – coal – to more environment-friendly commodities, such as lithium and graphite.

“We are working on a medium-term project to unlock graphite,” said Mbambo.

 

Edited by Creamer Media Reporter

Comments

Projects

Image of Clayton Valley lithium project
Clayton Valley lithium project, US
Updated 2 hours 10 minutes ago By: Sheila Barradas

Showroom

M and J Mining
M and J Mining

M and J Mining are leading suppliers of physical support systems as used by the underground mining industry. Our selection of products are not...

VISIT SHOWROOM 
SBS Tanks
SBS Tanks

SBS® Tanks is a leading provider of innovative water security solutions with offices in Southern Africa, East and West Africa, the USA and an...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Resources Watch
Resources Watch
17th July 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.285 0.32s - 128pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: