Shipping, terminals and freight logistics major Grindrod delivered its 2015 audited results and dividends last week in Sandton.

CEO Alan Olivier explained that certain aspects of the company were coming under increased pressure, while others have been more resilient.

In terms of the company’s ports and terminals activities, Olivier said Maputo port revenue was up 2%, which he attributed to increased volumes, despite the fall in concession volumes. He said throughput at the Matola terminal had decreased a significant 14% to 3.5 million tonnes compared to 2014, but that increased Magnetite had off-set reduced coal volumes.

The Maputo main port terminals footprint was reduced, following the discontinuation of road-hauled Magnetite in 2014. Throughput at the Richards Bay terminal decreased 33% to 2.6 million tonnes from the 3.9 million tonnes recorded in 2014. There had also been a massive reduction (down 45%) of volume at the Maputo car terminal, which handled 33 436 vehicles for the year.

Olivier said rail earnings had decreased due to delays in rail infrastructure project spend and the suspension of some large mining projects. The Sierra Leone business has been renegotiated at reduced rates for an extended period of seven years for all locomotives. However, he said Grindrod still had a contract that would deliver 16 locomotives during the first quarter of this year.

According to Olivier, North-South rail corridor volume had continued to fall on the back of depressed copper prices and lower transit volumes in Zimbabwe. The car carrier logistics business had benefitted from a successful turnaround process that was continuing.

He said the ships agency and clearing and forwarding businesses continued to perform well, with focus on increasing activity in southern Africa’s cargo corridors. The intermodal business was right-sized for new opportunities and a shift away from mineral dependency, he said.

He added that the agri business was profitable, despite the current drought conditions in the country.