- Grindrod, the ports, terminals, and logistics group, reported a strong set of results for the year to December 2022, having shed the bulk of its non-core assets in the form of Grindrod Bank for approximately R1.6b.
- This has enabled it to focus on its core operations, recording robust results driven by record volume growth. In the Ports Division, volumes were up by 29%, and Terminal operations increased volumes by 23%. The Mozambique port of Maputo handled 9.8m tonnes due to the reopening of previously closed berths, and 24-hour operations at the SA border enabled higher productivity levels than those at SA ports. Likewise, the
- Matola dry-bulk terminal (also in Mozambique) handled 8.1m tonnes, with both operations recording strong export volumes of metals and minerals.
- Revenue growth of 62% to R6.33b vs R3.90b benefited the core operating divisions, with adjusted HEPS of R1.92C per share, and cash generated from operations was a healthy R1.7b. The logistics operations of coastal and container shipping recovered from the KZN floods, resulting in earnings up 134%, with strong growth in container handling and higher shipping rates, thanks to the subleasing of coastal chartered vessels.
- The benefits arising from a hamstrung Transnet are evident in the surge in volumes by the Grindrod group, which should profit from long-term contracts as Transnet opens its operations to companies such as Grindrod, which have the ability to operate at higher levels of efficiency.
- Grindrod is also looking to diversify its portfolio of commodities, such as granite, fuels, fertilizer, sugar, and grains, as well as expanding operations to growth areas such as India, where there is strong demand for high-quality SA coal. The company should also benefit from the reopening of China, with strong demand for commodities in a group such as Grindrod, which has access to infrastructure and a track record of delivering timeously to its customer base.
By Ron Klipin
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