GRINDROD TARGETS TRANSNET
Posted on 05 March 2009
Newly formed company RRL Grindrod, 53% black-owned, “is positioning itself to capitalise on business opportunities that would arise from rail restructuring in South Africa.” ( RRL stands for Rail-Road Logistics.) Grindrod chief executive Alan Olivier is quoted saying the finer details are being finalised: “At the moment it is difficult for private companies to operate in rail because of the monopoly by Transnet. We want to be ready if and when it becomes possible for private companies to operate.” RRL Grindrod offers locomotive leasing, shunting services and other rail operations, such as the building of trainsets and loading of rail wagons. The company, which currently possesses a fleet of seven locomotives, already has shunting contracts at several mines.
Grindrod previously held a 50% stake in Sheltam Grindrod, which was sold some months ago.
Grindrod reported a 95% increase in headline earnings per share in 2008. The shipping division was the major contributor to profit, due to the high level of contract cover, increased tank and dry bulk earnings, profits from ship sales and the rand’s weakness against the dollar. The group has committed to investing R3.2 billion on capital expenditure over three years of which R2.8 billion will be used to buy ships while the rest will be spent on property, terminals, vehicles and equipment.
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