Grindrod Limited has unveiled plans to take full control of Terminal de Carvo da Matola Limitada (TCM) at the Port of Maputo by acquiring the remaining 35% stake in the entity.
The companys $77-million acquisition of TCM, which handles the export of coal and magnetite at the Matola Bulk Terminal in the port,is expected to be finalised within the next six months, pending regulatory approvals and fulfilment of key conditions.
As a member of a consortium with CFM and DP World, Grindrod already owns and operates terminals at the port, and the acquisition of the remaining interest in TCM marked a crucial step in the companys growth plans, Grindrod said in a statement on Thursday.
TCM is a private entity based in Maputo operating a dry bulk terminal with an annual export capacity exceeding seven million tonnes, specialising in critical commodities like magnetite and coal. The terminals sub-concession with the Maputo Port Development Company allows it to handle cargo via rail and road, offering an integrated pit-to-port logistics solution.
Grindrod said the acquisition aligned with its long-term vision of enhancing its integrated logistics services along the Maputo corridor.
Grindrods acquisition of the remaining 35% stake in TCM not only solidifies its presence at Mozambiques Maputo port but also aligns with its broader strategy to expand logistics and export capabilities across southern Africa.
With the transaction expected to close within six months, and a long-term throughput agreement secured, Grindrod is well-positioned to leverage its assets and partnerships to meet the rising demand for integrated logistics solutions in the region, the company said.
It sees TCM as a strategic asset that will play a pivotal role in unlocking value across the corridor.
Grindrod said its plan to boost the ports throughput capacity had also been bolstered by a new agreement with Vitol Coal South Africa.
This agreement, set to potentially last up to nine years, with an initial capacity allocation of 2.25 million tonnes per annum, replacing the current agreement. This long-term partnership highlights Grindrods commitment to maintaining stable and consistent cargo flows, further strengthening its competitive position in the region, the company said.
The acquisition seals the companys alignment with Maputo ports expansion plans.
The groups intention to further develop the TCM terminal will likely result in increased capacity and operational efficiency. The investment will not only boost the ports throughput but also position it as a critical logistics hub for southern Africas mining sector, Grindrod said.
Additionally, with global demand for commodities, particularly from Asia, continuing to grow, the increased capacity at TCM is expected to attract more traffic through the port, enhancing its potential.
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