Grindrod Limited has unveiled plans to take full control of (TCM) by acquiring the remaining 35% stake in this entity. This US$77 million acquisition is expected to be finalised within the next six months, pending regulatory approvals and fulfilment of key conditions.
As a member of a consortium with CFM and DP World, Grindrod already owns and operates terminals at the port, and the acquisition of the remaining interest in TCM marks a crucial step in the company’s growth plans. TCM, a private entity based in Maputo, operates a dry bulk terminal with an annual export capacity exceeding 7 million tonnes; specialising in critical commodities like magnetite and coal. The terminal’s sub-concession with the Maputo Port Development Company allows it to handle cargo via rail and road, offering an integrated pit-to-port logistics solution.
This acquisition aligns seamlessly with Grindrod’s long-term vision of enhancing its integrated logistics services along the Maputo corridor. According to the company, TCM is a “strategic asset” that will play a pivotal role in unlocking value across the corridor. By fully consolidating its ownership of TCM, Grindrod aims to maximise the terminal’s potential, delivering more efficient and cost-effective logistics solutions for its clients.
Grindrod’s plan to boost the port’s throughput capacity is bolstered by a new agreement with Vitol Coal South Africa. This agreement, set to potentially last up to nine years, with an initial capacity allocation of 2.25 million tonnes per annum, replacing the current agreement. This long-term partnership highlights Grindrod’s commitment to maintaining stable and consistent cargo flows, further strengthening its competitive position in the region.
Furthermore, the acquisition marks a significant investment by Grindrod and seals Grindrod’s alignment with Maputo Port’s expansion plans. The group’s intention to further develop the TCM terminal will likely result in increased capacity and operational efficiency. The investment will not only boost the port’s throughput but also position it as a critical logistics hub for Southern Africa’s mining sector.
Additionally, with global demand for commodities, particularly from Asia, continuing to grow, the increased capacity at TCM is expected to attract more traffic through the port, enhancing its great potential.
The strategic location of Maputo Port, serving as a gateway to international markets, establishes it as a decisive hub for future investments in regional trade infrastructure.
In summary, Grindrod’s acquisition of the remaining 35% stake in TCM not only solidifies its presence at Mozambique’s Maputo Port but also aligns with its broader strategy to expand logistics and export capabilities across Southern Africa.
With the transaction expected to close within six months and a long-term throughput agreement secured, Grindrod is well-positioned to leverage its assets and partnerships to meet the rising demand for integrated logistics solutions in the region.
This investment reaffirms the company’s commitment to delivering value for its stakeholders while advancing the development of critical trade corridors.
