Press Release: Grindrod Limited
GRINDROD INTRODUCES VITOL AS A STRATEGIC PARTNER IN THE
MAPUTO COAL TERMINAL AND FORMS A COAL TRADING JOINT
VENTURE
Grindrod Limited, the JSE listed integrated logistics
services supplier and the Vitol Group, one of the world's
largest energy trading businesses, have entered into an
agreement effective 1 January 2012. Vitol will acquire from
Grindrod a 35% interest in the company which owns the Maputo
coal terminal concession for a consideration of US$67.7
million. In addition Vitol and Grindrod will enter into a
partnership (65% Vitol / 35% Grindrod) to combine their
respective sub Saharan coal trading businesses.
Grindrod was awarded the concession to operate this terminal
known as Terminal de Carvão da Matola (TCM) until 2033 with
an option to extend the concession for a further 10 years. To
date US$70 million has been invested in the refurbishment and
building of infrastructure expanding the capacity of the
terminal to 6 million tons per annum. TCM is ideally situated
for the export of coal to international markets. The dredging
of the port channel was completed in 2011 allowing larger
vessels up to Panamax size to enter the port contributing to
the port's competitiveness. The Mozambique government, CFM
and Transnet have aligned to promote the delivery of cargo by
rail to the port which has seen tremendous improvement in
rail delivery.
Demand for capacity at TCM continues to grow which led to
the feasibility study for an expansion of capacity by 20
million tons (phase 4) requiring an investment of
approximately US$ 800 million. The expansion project involves
excavation and land reclamation; resulting in a footprint of
120 hectares; the construction of two additional berths, a
stockyard and railway infrastructure.
Grindrod, through the introduction of Vitol, has established
a relationship with one of the world's largest trading
businesses. Alan Olivier, CEO Grindrod Limited said: "Vitol
is the ideal partner to assist us in the coal terminal in
Maputo. They have significant experience in building
terminals and they are a reputable global trading business.
Their strong balance sheet will further assist in the
opportunity to offer junior miners capacity in the terminal.
I believe our shareholders and customers will benefit, as
through this transaction we have increased our capability to
deliver on this strategic expansion project and we look
forward to further developing our relationship with
Vitol."
"We are delighted to have concluded this deal with Grindrod"
said Bob Finch, Head of Coal trading at Vitol. "Both parts of
this transaction create opportunities to underpin a
significant expansion of our coal trading business, which is
an increasingly important part of Vitol's global trading
activity".
The transaction is subject to approval from the Mozambican
government.
About Grindrod
Grindrod, first established in 1910, has evolved into an
integrated logistics 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
About Vitol
The Vitol Group was founded in 1966 in Rotterdam, the
Netherlands. Since then the company has grown significantly
to become a major participant in world energy markets and is
now one of the world's largest independent energy traders.
Its trading portfolio includes crude oil, oil products,
bunker fuel, LPG, LNG, natural gas, coal, power, metals and
carbon emissions. Vitol trades with all the major national
oil companies, the integrated oil majors and the independent
refiners and traders. Through its trading business, Vitol has
established itself in shipping as one of the world's largest
charterers of crude oil and oil product tankers. Globally
Vitol trades over 5.5 million barrels of crude oil and
products per day and its 2010 revenues were $195 billion.
In addition to its trading business and its 50% share in the
storage and terminals business, VTTI, with 11 terminals on
five continents, Vitol has an exploration and production
business which includes interests in Ghana, Cameroon,
Kazakhstan, Russia and Azerbaijan. It also currently owns and
operates over 100 000 barrels per day in refining assets and
a thermal coal mine in British Columbia, Canada.
Further details on the Vitol Group are available at
www.vitol.
Media Contacts
Grindrod:
Alison Briggs
Public Relations and Marketing Manager
Grindrod Limited
Durban, South Africa
+27 (31) 302 7113
alisonb@grindrod.co.za
Vitol:
Cohn and Wolfe, Geneva.
Victoria Dix +41 (22) 908 4071 - victoria.dix@cohnwolfe.
Brunswick Group LLP, London
Patrick Handley/Elizabeth Adams 020 7404 5959
phandley@brunswickgroup.com/eadams@brunswickgroup.
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