Maersk intends to form joint venture with Grindrod in South Africa
In order to enhance its capabilities as a global integrator of logistics in South Africa, A. P. Moller - Maersk now takes the next step to partner with Grindrod Limited to provide logistics solutions.
Through this proposed joint venture, the logistics activities of Grindrod Intermodal business and the ocean activities of Ocean Africa Container Lines (OACL) will complement Maersk’s current Ocean capabilities and Logistics & Services, enabling customers seamless access to a wider range of end-to-end supply chain solutions.
Maersk will have a 51% share in this proposed joint venture which will increase access to landside infrastructure and capabilities which are critical to delivering reliable logistics solutions.
With over 100 years of experience The Grindrod Group is a well-known and trusted partner in South Africa. It is the ambition of Maersk to build on the foundation of Grindrod to expand its offerings to customers.
Jonathan Horn, Maersk Southern Africa and Islands Area Managing Director, said:
"We are looking forward to partnering with Grindrod in this proposed joint venture, so that we can offer our customers even better value and true end-to-end integrated logistics solutions in South Africa. We will have a far greater ability to seamlessly integrate solutions between ocean and the landside whilst weaving into our organisation an increased capability and experience through colleagues from Grindrod, who has long held a strong reputation in the landside logistics space."
Bringing together logistics operations skills and capabilities under this new proposed joint venture will create a base for growth and enable Maersk to excel in the Logistics & Services products execution through better serving customers via intermodal solutions in trucking, rail, depots, warehousing, and ocean feedering.
Xolani Mbambo, CEO GRINDROD Freight Services, said:
"Grindrod has been working with Maersk for many years in an area that both organisations are passionate about, understanding our customers’ requirements and finding cost effective and efficient routes to market. Our combined service offering will provide further flexibility and will ultimately contribute to making a positive difference in South Africa’s trade with the world."
Customers looking for end-to-end solutions in South Africa will continue to work with Maersk, however after closing most of the landside execution will be done by the proposed new joint venture.
The transaction is subject to obtaining regulatory approvals, including required competition law approvals. The new organization will be formed and go live within a few weeks of approval being granted by relevant regulators. Until then both companies remain separate and will continue to conduct their businesses independently.