Island View Storage and Richards Bay Bulk Storage join forces
ISLAND VIEW Storage (IVS) and Richards Bay Bulk Storage (RBBS) have signed a merger agreement, which will add RBBS's high tech liquified gas and specialised storage business to the more extensive and versatile bulk liquid operations of IVS.
The new company will offer a chain of facilities in Cape Town, Durban, Richards Bay and Isando, with Mozambique to be included shortly, enabling clients to access a range of facilities and related logistical services on a scale hitherto not available to South African and regional importers and exporters.
Rennies Group and C G Smith are the major shareholders of the new company, holding 24% and 60% respectively. Rennies has the right to acquire a further 6% from C G Smith, while IVS has the right to acquire the Rennies liquid storage business in Maputo, Beira and Nacala.
Rennies operates a full range of dry, wet, neo bulk and container terminals throughout southern Africa, but accept that the management of hazardous liquid products requires a specialist focus.
Housing these operations in IVS will go a long way to achieving this focus, says Derek Lawrance, deputy c.e.o. of Rennies, who says the deal also gives IVS clients the ability to tap into Rennies' extensive network and logistics capabilities.
The Rennies liquid terminal operations, on the other hand, will gain access to the port of Durban and to a wider range of markets and customers.
We have been contemplating developments in Richards Bay and Cape Town for some time, says IVS m.d. Rodger Graham. By merging the interests of the two companies, IVS will gain access to the existing infrastructure and facilities of both ports.
