Grindrod buys another chunk of Maputo port

DURBAN-BASED Grindrod Group has acquired an additional 12% share in Maputo Port Development Company (MPDC), giving it an almost 25% shareholding in the port. Grindrod acquired a 12.24% share in MPDC from another investor in April 2006. The latest purchase came about when Swedish company Skanska Infrastructure Development, one of the world’s leading construction companies, agreed to sell its 12% stake in MPDC to Grindrod. According to Skanska it will realise a substantial profit by selling its stake for US$16.5 million (SEK105 million / R108m). Skanska says it helped develop the harbour as a PPP project (Public Private Partnership) jointly with other international investors and the government of Mozambique. “The harbour has developed successfully and sales have more than doubled during the past four years. Maputo is of strategic interest since it is the closest shipping harbour for South African industries around Johannesburg and Pretoria.” In addition to its now strong investment in the Mozambique port, Grindrod also holds a 95% share in the adjacent Matola Coal Terminal. When it purchased the Matola terminal Grindrod said it intended spending US$25 million on upgrades over a period of time and anticipated increasing the terminal’s throughput capacity from about 1.3 million tonnes to 6 million tonnes annually. MPDC manages and operates the port of Maputo on a 15 year concession with a further 10 year option. When created in 2002 the consortium consisted of Mersey Docks & Harbour Company, UK’s second largest terminal operator, Sweden’s Skanska, Portugal’s terminal operator Liscont and Mozambique’s Gestores. CFM, Mozambique’s national port and railway authority holds a 49% share in the port with MPDC holding the other 51%.