GRINDROD: Moving onto a new track
Latest rail deal seen as a perfect fit due to WBHO’s experience in major projects and FFE’s empowerment credentials
Grindrod must be glad to have at last offloaded chunks of its rail business after years of losses and write-downs. These have been a millstone around the freight, shipping and financial services group’s neck at a time when global trade has long been in the doldrums. Investors are asking if this will be enough to stem huge losses at the company. Some of its rail interests remain, including a signalling and train control systems business and a costly locomotive assembly operation. With shipping markets improving, it will be interesting to see the effect of the remaining rail businesses on Grindrod’s annual results to December 2017.Along with postponement of capital investments in new rail infrastructure in Africa and "aggressive road-haulage rates", this has affected rail construction, rehabilitation, electrification and maintenance of networks, including for large industrial and mining customers. Critically, though, transformation in the local construction and engineering industry ha...
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