Grindrod commits to rail in Africa

Terminal concessions in its sights
TERRY HUTSON PERHAPS
IT’S only fitting, considering Grindrod’s recent acquisition of a 50% share in Port Elizabeth-based Sheltham Locomotive & Rail, that Laurence Stuart-Hill, Grindrod Logistics’ chief executive, says rail will remain the company’s chief focus when it comes to moving goods into Africa. That’s after first shipping the cargo to the nearest port, of course, and naturally on board one of associated company Ocean Africa Container Lines’ vessels. Stuart-Hill is taking cognisance of the plentiful opportunities presented in southern and central Africa, which link the ports to rail operations heading inland. “We really don’t have too much exposure with the road and we’re fully committed to rail in many respects,” he stresses. By saying this he is also shedding a few clues as to the reason why Grindrod joined forces with Sheltham. The group is gazing far ahead at future opportunities deep into Africa. Sheltham has already expressed interest in or is already shortlisted for the proposed concessioning of rail services in countries as widespread as Djibouti and Ethiopia, Kenya, Congo Brazzaville and Tanzania. Grindrod Logistics is also giving serious attention to terminal operations in the ports, having taken over bulk terminal operations at Maputo and Walvis Bay. But Stuart-Hill says they will always move ahead cautiously and with local partners who know the business. It’s a grand and ambitious scheme, and probably feasible only in parts, but indicates the serious intent in Grindrod’s logistical approach towards taking control of the entire logistics chain from factory floor to customer’s shop, even when these happen to be geographically far removed. It’s still early days and other acquisitions
lie ahead before this transport and freight
jigsaw is pieced together. Grindrod’s march forward as a major transport player began unexpectedly and quietly with the buying of ships while the market was low, way ahead of the pack in many respects. Group managing director Ivan Clark has spoken publicly of expanding inland operations that will make Grindrod a bigger player in land-based logistics in Africa.