Grindrod to boost Maputo cargo capacity
Grindrod plans to expand its Maputo operations as South Africa’s freight rail reforms create an opportunity for the group to move more cargo through the port. The freight, port, and logistics services group plans to increase annual capacity at its Matola terminal in Mozambique from 7.3-million tonnes to 12-million tonnes by the first half of 2027.
Grindrod has identified an initial 400,000-tonne opportunity on the Belfast-Komatipoort railway in Mpumalanga, which forms part of the rail link to Maputo, from 2027. They outlined the plans at the RMB Big Five Investor Conference on Wednesday, saying export volumes in the region were increasing while changes to South Africa’s freight rail system were creating opportunities for additional capacity.
The reforms allow private operators to access parts of Transnet Freight Rail’s network, with the infrastructure remaining state-owned. Grindrod is among the logistics groups looking to use the network to move cargo by rail. They did not say whether the 400,000 tonnes represented contracted cargo or a potential volume they expect to capture.
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South Africa’s rail reforms are intended to increase the amount of freight carried by rail by allowing private train operators to compete for access to the network. The first 11 private train operating companies were approved in March, with operations expected to start from April 2027. These companies are expected to add capacity for up to 24-million tonnes of freight a year.
Grindrod also plans to deepen the Port of Maputo in the second half of 2027, enabling Capesize vessels to enter the port. A container depot and handling facility at Richards Bay is planned for 2028. The developments come after a strong first half at Maputo, where port volumes rose 29% to 8.4-million tonnes in the six months to June.
June was a record month, with 1.6-million tonnes handled. The group’s revenue rose 19% to R2.8bn, while earnings before interest, tax, depreciation and amortisation increased 52% to R884m. Headline earnings were broadly unchanged at R593m. Cash generated from operations rose 28% to R561m, while Grindrod increased its interim ordinary dividend by 6% to 24.3c a share.
