Grindrod buys Tate & LyleÆs South African terminal operations
South African shipping group Grindrod Ltd. has acquired Tate & Lyle's terminal operations in the ports of Durban and Cape Town for an undisclosed sum.
Tate & Lyle's South African terminal operations comprise port side liquid bulk storage and transit facilities. The Durban facility is located in Maydon Wharf and caters mainly for storage and export of molasses, while the Cape Town terminal serves various chemicals and vegetable oils imports. Both terminal operations will be branded as Grindrod Tank Terminals.
Grindrod's 'tanker operation has significant expertise, experience and business relationships in the liquid bulk sector. This experience extends to both petroleum and chemical products making sense that the group expand into the tank terminal industry, and Tate & Lyle's operations provided an immediate entry into the market,' said Grindrod Director Laurence Stuart-Hill.
'Grindrod intends to invest significantly supporting the current business and customers and to expand into other areas servicing a greater range of products. This will be done through greenfields projects, which rely on securing land within the port jurisdictions for development and linkage through pipelines to appropriate tanker berths.
'There is a growing demand for petroleum storage and transit facilities in the ports as demand in South Africa for petroleum products increase. This demand will likely be serviced by more imported product. An opportunity also exists to provide portside tank facilities for import licensees which are in the process of being appointed for the importation of such fuels,' Stuart-Hill said.
Grindrod added that it is also looking to establish a bulk liquid terminal in the port of Maputo to service the demand for chemical and vegetable oils in the Mozambican market. Grindrod has a shareholding in Maputo Port Concession Co., which is responsible for the development and operation of the port.
Grindrod buys Tate & Lyle’s South African terminal operations
