Grindrod says it will acquire the remaining 35% interest in Terminal de Carvão da Matola (TCM) from the Vitol Group for $77m (R1.36bn).
TCM owns a dry bulk terminal in Maputo that has the capacity to export more than 7-million tonnes a year of primarily magnetite and coal.
TCM is operated under a subconcession to the Maputo Port Development Company’s main port concession and has the capacity to receive cargo by rail and road with its own dedicated export berth, which handles gearless panamax and baby cape vessels.
After the completion of the transaction, Grindrod will be holding 100% of TCM.
TCM’s long-term subconcession was a strategic asset enabling Grindrod to provide cost-effective and efficient integrated logistics solutions for its customers’ cargo flows, the freight logistics company said in a statement.
Grindrod said on Wednesday that the asset would allow it to unlock its value creation across the Maputo corridor and drive its pit-to-port solution for its customers.
One of the conditions of the transaction was that TCM and Vitol Coal SA, an affiliate of the seller, entered into a new throughput agreement, which was expected to be for a period of up to nine years and an initial capacity allocation of 2.25-million tonnes a year, replacing the existing throughput agreement between TCM and VCSA.
The deal is also subject to competition authority approval in SA and Mozambique.
In August, the Durban-based group, valued at R11.2bn on the JSE, reported a profit of R485m for the six months to end-June from R444m previously. Cash generated from operations rose 13% to R425m.
The company, which also owns ports, terminals and tankers, reported freight volumes at its Maputo port were up 18% to 6.9-million tonnes, supported by a robust market for chrome
CEO Xolani Mbambo said at the release of the results that the Maputo port had achieved its strategic goals by prioritising its technology-enabled visualisation projects.
Mbambo was confident that it would persist in accelerating momentum for customers.
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