Grindrod’s collaboration pays off in Maputo

JSE listed Grindrod Limited and its partners, continue to build on its core freight management competence in improving and unlocking trade corridors. This is evident in the recent improvement in the efficiency achieved at the port of Maputo. Amongst other factors, the improvement is attributed to three major interventions which Grindrod is proud to be associated with.

Firstly, the Maputo channel dredge (port deepening) completed by the Maputo Port Development Company* (MPDC) in January 2017, at a total cost of US$ 85m, which allowed the largest post Panamax vessel to set sail from Maputo in June 2018 with 100 674 DWT; a record for this port.  Total MPDC port volumes achieved in 2017 increased by 22% in comparison to 2016. Further investment in freight handling equipment to facilitate the more efficient loading of these type of vessels, at a cost of US$ 25m, will be complete in the 2nd quarter of 2019.

Secondly, the Berth Deepening and Quay Offset Project at Grindrod’s Matola Coal Terminal (TCM) which now allows fully-laden Panamax vessels to berth at TCM. In recognition of the Berth Deepening project at TCM, on 12 October 2018, Grindrod, as the client, and its appointed consulting engineers, PRDW Africa (Pty) Limited, and contractor, Subtech Group Limited, jointly received a South African Institute of Civil Engineering award (SAICE) in the category of most outstanding civil engineering project (Railway and Harbour Engineering), whilst being highly commended in the category of Outstanding International Project.

Thirdly, the collaboration between key business partners Transnet Freight Rail (TFR), Mozambique Ports and Railways (CFM) and MPDC, allowed TCM to increase coal volumes by 36%. This significant increase came on the back of improved information sharing, continuous planning and commitments made in support of each of the parties’ business models. The result is an improvement of 25% (to 50 wagons per train) on the coal rail-line and a 7% increase on the magnetite rail-line. In September 2018 the first 80-wagon train (a further 60% improvement on the existing coal-line) was successfully tested through the Maputo corridor.

These achievements contributed to TFR receiving a prestigious Platinum award for the Maputo Corridor at the Annual Logistics Achiever awards on 14 October 2018. The award gives top honours for: “Expanding South Africa’s International Global Route-to-Market and capacity”.

Andrew Waller, CEO Grindrod Limited commented: “I am extremely proud of what our logistics partners and Grindrod, in particular the Maputo teams, have done to unlock this corridor and provide an efficient solution to our customers. This not only involved the collaboration between TFR, CFM, MPDC and Grindrod, but also included the employment and on-boarding of 477 new (Mozambique nationals) employees and some 7 000 + hours of training.
To be associated with such prestigious awards in the process, confirms our strategic intent and human capital potential. “


*The Maputo Port Development Company is a national private company in which Mozambique Railway Company (Caminhos De Ferro De Mozambique) (49%), Grindrod (24,7%), DP World (24,7%) and local partners (1,6%) are shareholders. MPDC secured the port concession until 2033 with the option of extending for a further 10 years.