Grindrod buys into rail company

TERRY HUTSON
IN A surprise development Grindrod has acquired a 50% share in Port Elizabeth-based Sheltham Locomotive and Rail Services.
In just a few years Sheltham has developed a reputation as a progressive private railway operator, operating a fleet of owned locomotives on mine and other private railways as well as in several regional countries. Sheltham has also taken part in the bidding process for several African railways including Kenya Railways.
The company operates a marine division servicing marine power plants as well as an air charter business servicing South Africa and adjacent countries.
“We are extremely pleased with the acquisition which follows our stated strategy of investing in the South African logistics industry. The strong shipping markets continue to generate good cash flows which we need to invest carefully in core business,” said Grindrod’s MD Ivan Clark.
Sheltham’s current owner Roy Puffett said the deal would take Sheltham to the next level of growth. There are substantial synergies in cross marketing opportunities between Grindrod and Sheltham, which can be capitalised on, he said.
The acquisition follows close on Transnet’s recent announcement that Spoornet would create a framework to allow private rail operators to participate in South African rail services.