Grindrod, the JSE-listed logistics services group, has identified a growth pipeline that includes several logistics infrastructure-led investment opportunities in South Africa valued at R8 billion.

“Grindrod is uniquely poised to take advantage of the opportunities in the logistics space as South Africa progresses on its logistics network reform agenda,” the group said in a trading statement on Tuesday.

The group is participating in the open access slots process across the rail network in South Africa.

“The business will be discerning in the corridors it tenders for, evaluating the opportunities against a set of criteria including efficiencies, customer commitments, understanding of the corridor and the impact on the overall returns across the logistics value chain,” the directors said.

The acquisition of the remaining 35% shareholding in Matola terminal in Mozambique for R1.5 billion was well advanced.

Negotiations on the R500 million Richards Bay Container Handling Facility were concluded in the first quarter of this year.

The refurbishment on the 13 repatriated Sierra Leone locomotives was also progressing well.

Grindrod headline earnings per share (HEPS) and earnings per share (EPS) were expected to be between 43.7 cents and 49.7 cents, and 44.1 cents and 50.1 cents, respectively.

This represented a decrease of between 67%-71% for HEPS and 66%-70% for EPS, from the previous year.

Total HEPS and EPS were impacted by the fair value and expected credit losses of R522.9m, which resulted from the disposal of North Coast property-backed loans for R500m and R165.5m additional provision for warranties on specific non-core loans that were sold as part of the Grindrod Bank deal.

Headline earnings a share (HEPS) from core operations were expected to be between 147.4 cents and 153.4 cents, a decrease of between 25% and 28% from the previous year’s 203.7 cents.

Overall performance was impacted by lower commodity prices (except chrome), intermittent disruptions at the Lebombo/Ressano Garcia border, and low container handling throughput.

The impact of the border disruptions was 4.4 million tons per annum (mtpa) on volume and between R180m and R200m on headline earnings.

The dry bulk terminal operated by the port of Maputo achieved record chrome exports of 14.3 mtpa versus 12.6 mtpa the year before.

“Grindrod's capital allocation framework, growth opportunities, track record of operational performance, and healthy balance sheet will enable investment in future growth and drive strong returns for shareholders,” the group said. The results are expected to be released on March 6.

Grindrod's share price inched up 1.18% to R13.26 Tuesday afternoon, a price slightly up on the R11.87 it traded at a year before.

BUSINESS REPORT