Staff Writer
Grindrod says it remains focused on expanding its integrated logistics platform and advancing key infrastructure projects despite operational challenges that weighed on parts of its business during the five months ended 31 May.
At Walvis Bay, Grindrod operates a bulk and break-bulk terminal facility.
The company said it continues to make progress on strategic initiatives, including South Africa’s rail open access programme, the Matola back-of-port expansion, the Maputo dredging project and investment in the Richards Bay container facility.
It said its strategy remains centred on operational excellence, disciplined capital investment and maintaining a balanced approach to dividends, growth and financial flexibility.
Grindrod said the business remained operationally resilient despite softer export volumes at the Matola terminal, which were affected by adverse weather in the Palabora region and higher freight costs linked to geopolitical tensions.
The company noted that global commodity markets remained supportive during the period. Thermal coal and chrome ore prices strengthened, while iron ore prices remained relatively resilient despite market volatility.
Thermal coal prices increased between January and May 2026, supported by higher crude oil and natural gas prices, while chrome ore benefited from strong demand from Chinese ferrochrome smelters.
At the Port of Maputo, the dry-bulk terminal exported 6.8 million tonnes during the period, compared with 5.2 million tonnes in the corresponding period of 2025.
Dry-bulk export volumes at the Matola terminal declined 8% to 3.5 million tonnes from 3.8 million tonnes a year earlier because of adverse weather and increased freight costs.
Overall dry-bulk volumes across Grindrod’s terminals declined 3% to 6.5 million tonnes.
In South Africa, the Navitrade facility in Richards Bay increased handled volumes by 46%, while the Maydon Wharf multi-purpose terminal recorded a 42% increase.
Other back-of-port facilities in Richards Bay handled lower volumes than in the previous period.
The expansion of the Matola magnetite and coal terminal, which will increase annual capacity to 12 million tonnes, remains on schedule and is expected to be completed in early 2027.
Grindrod also reported record activity at its Maputo Car Terminal, where transshipment volumes increased significantly.
Vehicle units handled during the reporting period were 23% higher than the total handled during the whole of 2025.
The logistics division, however, faced a more challenging operating environment. Container throughput remained subdued, while ships agency, clearing and forwarding activities were broadly unchanged.
Graphite shipments in northern Mozambique increased temporarily, but operations at the Eswatini sidings were closed after coal cargo from Belfast stopped transiting to Maputo through Eswatini.
Rail performance also declined because of lower locomotive deployment, although the company expects utilisation to improve in the second half of the year.
Grindrod said it has executed its rail access agreement and is finalising the remaining operational and contractual conditions. Rail operations are expected to commence in the first quarter of 2027.
Financially, the company’s earnings from the Port of Maputo increased to N$204 million from N$165.9 million in the corresponding period of 2025.
The Port and Terminals segment recorded an EBITDA margin of 38%, while the logistics segment’s EBITDA margin, excluding transport brokering, declined to 15% from a restated 20% a year earlier.
As at 31 May 2026, Grindrod reported net debt of N$38 million, compared with net cash of N$700 million at the end of December 2025.
The company said its balance sheet remains strong and is well positioned to support its capital investment programme and future growth initiatives.
