DURBAN, SOUTH AFRICA, 15 November 2021 – Grindrod Limited, listed on the JSE with operations in Freight logistics and a Bank, has agreed to merge the South African container logistics businesses of Grindrod Intermodal (GIM) and Ocean Africa Container Lines (OACL) with A. P. Moller Maersk’s (Maersk) inland container terminals.
Grindrod’s intermodal facilities are located nationally, providing the landside logistics to support the container feeder service operated by OACL. Its container vessels ship regional and domestic cargo for international carriers such as Maersk.
Maersk has been a Grindrod customer for many years and over time the Grindrod Intermodal business has become an extension of Maersk’s service offering to its customers. Grindrod and Maersk can together offer the customer an end-to-end solution – from the farm, to cold storage, to the port and on to global markets.
New and existing customers will have access to a seamless and broader range of logistics and service offerings – from the point of origin to the final destination – incorporating transportation by road, rail, or sea, warehousing, container depots, and traditional logistics. The proposed joint venture will bring together operational expertise, skills, and capabilities and increase the infrastructural capacity and geographical footprint.
Future investment in assets and infrastructure is anticipated, which will promote further development of the South African economy.
"We are looking forward to partnering with Grindrod in this proposed joint venture, so that we can offer our customers even better value and true end to end integrated logistics solutions in South Africa. We will have a far greater ability to seamlessly integrate solutions between ocean and the landside whilst weaving into our organisation an increased capability and experience through colleagues from Grindrod, who has long held a strong reputation in the landside logistics space" says Jonathan Horn, Maersk Southern Africa and Islands Area Managing Director.
"Both organisations are passionate about understanding our customers’ requirements and then finding the most cost-effective and efficient routes to market. Our combined service offering will provide further flexibility and will ultimately contribute to making a positive difference in South Africa’s trade with the world," says Xolani Mbambo CEO Grindrod Freight Services.
The transaction is subject to obtaining regulatory approvals, including required competition law approvals.