Trust, patience see Maputo port yield record results – Grindrod

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Trust, patience see Maputo port yield record results – Grindrod

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25th August 2023

By: Irma Venter

Creamer Media Senior Deputy Editor

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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

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