Grindrod suspends port operations in Mozambique after border closure
Nov 7 (Reuters) -Logistics company Grindrod GNDJ.J has suspended port and terminal operations in Mozambique after South Africa temporarily closed the main border with its northeastern neighbour over safety concerns after a violent crackdown on post-election protests, the company said on Thursday.
The suspension will hit the movement of goods and commodities in a region already battling with logistical bottlenecks as under-funded state-owned port and rail companies struggle to provide adequate services.
At least 18 people have been killed in the protests, human rights groups have said, as opposition supporters demonstrate against what they say is a fraudulent election win by Frelimo, the party that has ruled Mozambique since 1975.
South Africa's border authority said on Wednesday that it had closed the Lebombo border after receiving reports of vehicles being torched on the Mozambique side.
A Grindrod statement said it had suspended port and terminal operations in Maputo and Matola after the border closure and suspension of rail services.
The company is part of a consortium granted a concession to operate the Maputo port alongside DP World, the Mozambican Railway Company and Gestores, a private Mozambican company.
Maputo port reported record volume growth in 2023, partly owing to increased coal and chrome export volumes diverted from South Africa, where state-owned Transnet is failing to provide adequate rail and port capacity.
In 2023 Maputo port handled a record 31.2 million metric tons of cargo, mostly minerals including copper, chrome, ferrochrome and coal, up 16% on the previous year.
Reporting by Nelson Banya
Editing by David Goodman
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
