Grindrod further expands its fuel logistics business in Africa

Grindrod further expands its fuel business in Botswana JSE listed Grindrod Limited, the integrated logistics and shipping business, has finalised the transaction to purchase a 75.5% interest in the Botswana based fuel logistics company, Petrologistics. The interest, currently held by Imperial Holdings, Transport Holdings (Pty) Ltd, Botswana citizens, and the Citizen Empowerment Development Agency Venture Capital Fund (CEDAVCF), will be acquired for an undisclosed amount and the agreement effective from 1 January 2012. Grindrod’s 100% owned subsidiary Fuelogic (Pty) Ltd owns 24.5%. The current managing Director Mr Todd Mangadi will purchase a 5% share in Petrologistics from Grindrod. Grindrod first entered the Petrochemical industry in 2008 with the acquisition of WM TransLogistics and in 2010 concluded the acquisition of Fuelogic, a bulk liquid transporter operating in Southern Africa. Petrologistics is a bulk liquid fuel transporter operating in Botswana under long term contracts with customers such as Puma, Engen and Shell. The fleet of 114 specialised road tankers provide a primary and secondary distribution service. Primary distribution is the transportation of fuel from refineries/import terminals to inland terminals, depots and large customers. Secondary distribution is the transportation of fuel from inland terminals and depots to retail/smaller wholesale customers. Hylton Gray, CEO Grindrod Freight Logistics said that this transaction was in line with the group’s strategy of investing in assets that are an integral part of the supply chain. “Providing transportation and other integrated services for specific commodities along import and export corridors, is key in Grindrod’s service offering,” he added. Fuelogic and Petrologistics will operate as one business going forward operating a fleet of 380 road tankers servicing Sub-Saharan Africa. The business will trade as Grindrod Petrologistics. About Grindrod Grindrod, first established in 1910, has evolved into an integrated logistics and shipping service supplier focused on the movement of dry bulk and liquid bulk commodities, containerised cargo and vehicles by road, rail and sea. Listed in South Africa, Grindrod is a global business with representation in 25 countries, employing about 5000 people throughout its four divisions – Freight Services, Shipping, Trading and Financial Services. Grindrod Freight Services focuses on terminals, intermodal solutions, rail, port operations, road transportation and all facets of traditional logistics, including international freight forwarding, contract logistics and specialized industry-solutions. Grindrod Shipping’ modern fleet of dry cargo and product and chemical tankers trade globally under the banners of Singapore-headquartered Island View Shipping and Unicorn Shipping. Grindrod’s Trading division trades worldwide in dry and liquid bulk commodities, including agricultural products, industrial raw materials, marine fuels and lubricants. Grindrod Bank was established in 1994 and has matured into a competitive merchant bank, offering tailored financial solutions to corporate and private clients. Further details on Grindrod are available at www.grindrod.co.za Media Contacts Grindrod: Alison Briggs Public Relations and Marketing Manager Grindrod Limited Durban, South Africa +27 (31) 302 7113 [email protected]