Ports & logistics group Grindrod is targeting five growth projects that will either grow the capacity on the existing logistics corridors the company operates, or deepen the integration of these corridors, says Grindrod CEO Kwazi Mabaso.

Speaking late last month, during the JSE-listed company’s interim financial results announcement for the six months ended June 30, Mabaso described the Matola terminal expansion at the Port of Maputo complex as the most advanced of the five growth projects.

He said the project to lift capacity at the terminal to 12-million tons a year was within the allocated $40-million budget and on track for completion by the first quarter of next year.

The second project was participation in South Africa’s open-access rail programme – a major reform initiative that will allow third-party private train operating companies to run freight services on the national railway network previously controlled solely by State-owned rail operator Transnet.

“Rail open access is a very important growth lever for Grindrod from 2027,” said Mabaso.

“We are encouraged by the Transnet Rail Infrastructure Manager’s publication of the draft network statement version four, which marks further progress in the process.

“[It] provides a transparent and realistic view of the network, giving operators the clarity needed to plan with confidence.”

Mabaso said Grindrod’s entry as a train operating entity would start with running a test train from Belfast to Komatipoort before year-end. This route ultimately feeds Matola terminal volumes.

“This is a big step in confirming operational readiness ahead of planned operations in April 2027,” said Mabaso.

“We’ll deploy existing assets – four locomotives and 50 wagons – to start running two slots, and then ramp it up to three slots a week when we have received an additional 50 wagons.

“We are going to use the initial phase to establish the business case for the future scaling of Grindrod’s rail capability and capacity.”

Grindrod’s third growth project is the dredging of the Port of Maputo.

The Maputo dredging programme is expected to start later this year and it is still targeted for completion in the fourth quarter of 2027, said Mabaso.

“The dredging campaign remains a significant strategic value unlock for the Maputo corridor as it will deepen the Maputo Channel and enable the Matola Terminal to handle Capesize vessels of up to 170 000 t.

“The commercial logic is straightforward. Larger vessels lower the cost per ton, improving the overall landed cost. It also improves the corridor’s competitiveness against alternative corridors and unlocks incremental volumes that the deeper draught will make possible.

“It will improve the economy of every ton moving through Maputo,” noted Mabaso.

Project number four in the pipeline is the establishment of the Richards Bay container handling facility, which is targeted for 2028.

“The project extends Grindrod’s terminal platform into container operations, which will be part of the logistics segment,” said Mabaso.

The last project is Grindrod’s potential participation in Transnet’s private sector participation (PSP) programme, where Transnet is seeking a private sector partner for the Richards Bay Dry Bulk Terminal.

“This represents a significant medium-term strategic opportunity, with 27-million tons a year of potential capacity for chrome, magnetite and coal,” explained Mabaso.

“The request for qualifications closes at the end of October and Grindrod is participating.”

When cohesively considering all five projects, Mabaso noted that they were sequenced so that the near-term projects, such as the Matola terminal expansion, would fund and derisk “the more ambitious, medium-term PSP opportunities”.

Grindrod in August reported a 19% jump in revenue for the six months under review, to R2.8-billion, compared with the same period last year.

Headline earnings a share were flat at 88.8c, muted by a subdued performance from the logistics business owing to challenging market conditions and geopolitical headwinds, most notably the Iran–US conflict.