GRINDROD is looking to benefit more from increased usage of ports in Maputo by South African exporters and importers due to constraints being experienced by Transnet, prompting the logistics company to bump up its interest in a company that owns a dry bulk terminal in Mozambique by 35% to 100% for a consideration of $77 million (R1.35 billion).
The 35% has been snapped up from Grindrods partner in the asset, Vitol, which is based in Mauritius. Grindrod will pay $55m upfront and the remainder in quarterly instalments of $1.375m.
Logistical constraints are hobbling South African exporters, including bulk miners and other export producers. Some miners have had to cut production after stockpiles of ore and finished products worsened.
Grindrod was hoping to benefit more from this, said Anthony Clark, an analyst with Smalltalkdaily Research yesterday. This followed the acquisition of the remaining 35% it did not already own of Terminal de Carvo da Matola Limitada (TCM) which owns a dry bulk terminal in Maputo.
More product is going to the Maputo ports and the ports have seen increasing volume of throughput. The implementation of third-party rail access and the open rail border benefits between South Africa and Mozambique will be a boon for the ports, said Clark.
