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Maputo port picks up the slack for Grindrod

Logistics group reports record volumes through Mozambique, while Transnet falls behind

Picture: SUPPLIED
Picture: SUPPLIED

Logistics and cargo specialist Grindrod has reported record volumes handled in 2022 at Maputo port, attributing the 20% growth to rehabilitated berths and the implementation of 24-hour operations at the Lebombo border crossing from SA to Mozambique.

In a statement on Tuesday, Grindrod said the total volume handled was 26.7-million tonnes, up from 22.2-million in 2021, driven by increased demand.

At the same time in SA, calculations done by Business Day show that cargo volumes handled by the Transnet ports authority were down to 211-million tonnes from 217-million tonnes in 2021, compounded by supply chain issues and delays in moving goods caused by extended waiting periods at ports.

The increase in volumes in Maputo come after the port’s berthing area was recently rehabilitated, expanded and dredged to as deep as 16m, enabling it to receive and load bigger vessels.

Grindrod also credited the recent implementation of 24-hour operations at Lebombo border post, which connects SA and Mozambique, for the surge in activity at the port.

Grindrod CEO Xolani Mbambo. Picture: SUPPLIED
Grindrod CEO Xolani Mbambo. Picture: SUPPLIED

“Efficient use of infrastructure, automation and system integration have all contributed to the excellent results,” said Grindrod CEO Xolani Mbambo.

Maputo port — which handles a variety of cargoes including minerals, grains, sugar and vehicles — is a gateway to the Sub-Saharan region and the closest to Gauteng as well as to the Limpopo and Mpumalanga mining regions.

The CEO of the Maputo Port Development Company (MPDC), Osório Lucas, said Maputo port was “reaping the fruits of the major infrastructure developments performed in the past four years”.

He lauded the decision of the Mozambican government to establish a 24-hour border operation as positively affecting the whole Maputo corridor, saying investments made by the port in systems had also contributed to an improvement in efficiencies.

Aided by improved usage of the railways, Grindrod said volumes for chrome and ferrochrome saw a sharp increase of 73%, recording 2.4-million tonnes in 2022.

State-owned rail agency Transnet Freight Rail (TFR) last year signed a co-operation agreement with Mozambique’s port and railway authority to implement an immediate train run-through model that will result in the export of chrome and ferrochrome moving seamlessly from Belfast in Mpumalanga to the terminal.

Lucas said the formalisation of block trains between SA and Mozambique, without needing to change locomotives, was a further step in the continuous search for improved rail efficiency as the need for more balanced volumes between rail and road cargo increases.

Last year the port of Maputo launched a master plan that aims to increase handling volumes to 42-million tonnes by 2033.

Lucas said assessments and consultations would identify possible efficiency improvements while additional equipment, including mobile harbour cranes and supporting equipment, would be commissioned in a bid to improve turnaround time and throughput.

“We are currently trying to find creative solutions to increase our footprint to face the growing demand for the port,” he said.

Grindrod previously outlined plans to rehabilitate the Matola terminal, which handles mainly magnetite and coal. Mbambo has also highlighted expansion plans that are under way at Richards Bay, which mainly handles coal.

Remgro, the Rupert family-controlled investment company, unbundled its 25% interest in JSE-listed Grindrod last year. 

Grindrod’s share price fell 1.48% to R10.58 on Tuesday but is still up 5.8% so far this year.

gumedemi@businesslive.co.za

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