Grindrod Limited 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. 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$70 million has been invested in the refurbishment and building of infrastructure expanding the capacity of the terminal to 6 million tons per annum. TCM is ideally situated for the export of coal to international markets. The dredging of the port channel was completed in 2011 allowing larger vessels up to Panamax size to enter the port contributing to the port’s competitiveness.
Demand for capacity at TCM continues to grow which led to the feasibility study for an expansion of capacity by 20 million tons (phase 4) requiring an investment of approximately US$ 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.
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. 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.”
The transaction is subject to approval from the Mozambican government.
