Grindrod ‘well-positioned’ for second centenary

As the Grindrod Group celebrates a century of growth, CEO Alan Olivier is now tasked with building the foundation for its second centenary. And he believes Grindrod is very well positioned. “We have a strong balance sheet with substantial financial capability to grow,” he said. “Our fleet is modern and low-cost, and we have some very strategic infrastructural assets with the capacity for substantial growth.” On the initial steps going forward, Olivier intends the group to consider an offshore listing when the time is right; continue to look for opportunities to expand its fleet; and continue to look for investment opportunities. He suggested that this last condition would be opportunities such as the recent acquisition of the bunkering operation in Rotterdam, the recent development of the bunkersonly service in the English Channel and the acquisition earlier this year of Fuelogic. Looking at the freight services section of the group. Olivier told FTW that it would continue to expand its footprint into Africa. “It will also invest in infrastructure which aligns key commodities, corridors and customers,” he added. Also, an example of part of this focus on development in Africa lies in the Maputo Port Development Company (MPDC). In this, Grindrod has a 24.7% shareholding and has recently negotiated the extension of the concession to 2033 – with an option to extend the concession term for a further 10 years. Olivier sees Maputo as a key strategic port, positioned close to Mpumalanga, Gauteng and Limpopo and ideally situated to supplement capacity in the SA ports. “The extension of the concession term will allow for the implementation of the port master plan and for the development of the port to its potential,” he said. Another part of this Mozambican footprint is the extension of Grindrod’s Maputo Coal Terminal subconcession to 2043. “This,” said Olivier, “was concluded, together with an agreement to expand the coal terminal to an annual capacity of 16-25 million tonnes.” Everything is now set up for go, he added. “With strong demand for resources set to continue, this group - with its shipping, trading and ports and terminals infrastructure - is ideally positioned.”