Logistics company, Grindrod is planning to expand its operations in South Africa, this is after an open-access agreement allowed private companies to utilize the country’s rail systems.
Grindrod CEO Kwazi Mabaso said the open access deal would be a significant step for the company, allowing it to expand its operations in South Africa.
“Rail open access is a very important growth lever for Grindrod from 2027. We are encouraged by the Transnet Rail Infrastructure Manager’s publication of the draft network statement version four, which marks further progress in the process,” he said.
“This is a big step in confirming operational readiness ahead of planned operations in April 2027,” said Mabaso. We’ll deploy existing assets – four locomotives and 50 wagons – to start running two slots and then ramp it up to three slots a week when we have received an additional 50 wagons.”
“Execution of the rail access agreement is a particularly significant milestone. It positions Grindrod to participate in South Africa’s evolving rail landscape and creates the platform to unlock inbound capacity, expand integrated logistics solutions and strengthen competitiveness over the medium term,” he said.
South Africa’s state-owned logistics company, Transnet, established the Transnet Rail Infrastructure Manager (TRIM) to facilitate the integration of private companies into its railway network.
Transnet then struck a deal with 11 private train operating companies and established a leasing company to support smaller operators entering the market.
One of the companies that entered into the agreement was Grindrod, with companies hoping to begin operations in late 2026 and into 2027.
Despite strong earnings from Grindrod, its South African revenue declined slightly, from approximately R1.71 billion in the 2025 interim period to roughly R1.65 billion in 2026.
Mabaso said the logistics sector had achieved mixed results in the latest interim period.
“Logistics delivered a mixed result. Container, ships agency and clearing and forwarding traded in a soft market, while rail performance was impacted by reduced deployment,” he said.
The group also posted headline earnings of R593 million, largely unchanged from its 2025 interim reporting period.
