Reflecting the growing focus on joint venture partnerships between Transnet Freight Rail and the private sector, Grindrod has entered into substantial discussions with TFR on rail capacity issues, CEO Alan Olivier told guests at the launch of the Group’s interim results in Johannesburg last week. “We have a plan in place with them and they’ve bought into that plan. We believe in the second half of the year we will see an improvement and that there will be enough rail capacity to fulfil our 6 million ton requirement in Maputo and our 2.8 million ton requirement in Richards Bay.” The group generated earnings of R435.5 million for the six months ended June 30, 10% down on the same period in 2009. In his overview of the freight services division, Olivier reported profits of R103.3m for the period, an increase of 16% over the equivalent period in 2009. “Results were however negatively impacted by third party industrial action across most businesses in the segment,” he said. “In addition, volumes were also affected by limited availability of rail wagons to meet the demand for export capacity at the division’s drybulk terminals.” For the future, the development of ports and terminals will be a key focus for the company, said Olivier. “For the first time we have recognised profits from Maputo Port thanks to a continual improvement in volumes.” A significant development was the extension of the concession for the Port of Maputo for an additional 15 years, with the initial term of the concession now running until 2033, with the option for a 10-year extension thereafter. “The extension provides a timeline for the implementation of the port master plan and for sub-concessionaires to undertake additional investment,” he said.
