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BEE transactions set new course for supply chain

Black economic empowerment (BEE) has established a firm foothold in the South African marine – and particularly bunker – industry recently, with announcements on this front.

Firstly, Calulo Services, which is part of BEE group Calulo Investments, announced it has established a joint venture, known as Matrix Kepu Bunkers, with Hamburg-based Matrix Marine Holdings to offer bunker fuels and lubricants in southern Africa.

The move brings a BEE element to the supply of bunker fuels and lubricants in South Africa.

Bunker fuel is liquid fuel that is distilled from crude oil and used aboard ships. Being heavily contaminated, it pollutes greatly when burned.

The new company, to be based in Cape Town, would offer bunker services in Durban, Richards Bay and Cape Town.

“A further expansion to surrounding countries like Namibia, Angola, Mozambique and Tanzania is planned. In the near future, supplies offshore east and west Africa and Indian Ocean islands are envisaged,” Calulo and Matrix said.

Through Kepu Trading, Calulo has a presence in the local bunker market and operates in 14 ports in southern Africa.

Kepu Trading general manager Roy Meeser said in February that the transaction was the next logical step for Kepu. “We dominate the local market. So it is the next step to being a fully fledged trader. To do that, we need international partners. And we think we have found them.”

Calulo executive chairperson Mpho Diale said there had been an increase in vessel traffic and bunker demand in southern Africa. Managing director of Matrix Stefan Herde said the move would see the company grow from a local to a global supplier of bunker services.

He added that the company stood to benefit from Kepu’s knowledge of the market.

Meeser said the new joint venture would be ready for business “in the next few weeks”.

Matrix Marine Holdings is a subsidiary of Mabanaft, the trading division of Marquard & Bahls, a Hamburg-based petroleum company.

Grindrod Limited, the (R6.9-billion) JSE-listed shipping and logistics business, also announced a broad-based BEE transaction, resulting in the sale of 25% plus 1 share of its subsidiary Grindrod (South Africa) (Pty) Ltd (GSA) to Calulo Petrochemicals (Pty) Ltd (15%) and Adopt-a-School Foundation (10%) by way of the issue of new equity for a total consideration of R274 million.

Grindrod’s statement at the time said the BBBEE partners’ shares in GSA will be subject to the normal restrictions on alienation and encumbrance for a period of 10 years from commencement date of 1 January 2009 (“lock-in period”). The BBBEE partners will be entitled to sell their shares to other BBBEE partners at any point in time between years seven and 10 of the commencement of the lock-in period, subject to Grindrod’s approval.

All disposals of shares in GSA by the BBBEE partners are subject to preemptive rights in favour of Grindrod.

GSA includes the majority of Grindrod’s 100%-owned South African-based operations, and the following businesses in particular:

• Grindrod Terminals, comprising the dry and liquid bulk product terminal operations located in or adjacent to the ports of Richards Bay, Durban and Cape Town;

• Grindrod Intermodal, comprising container freight logistics operations that extend to container handling, storage, warehousing, transportation, sales and leasing; and

• Grindrod Logistics, comprising automotive logistics and storage operations, dry and liquid bulk transportation, perishable cargo clearing and forwarding and the provision of complete supply chain solutions in the furniture and durable goods sector.

“In negotiations with possible partners, Grindrod balanced its need to incorporate strategic commercial partners into the business as well as supporting the sustainability of worthy broad-based enterprises.

“Grindrod’s intention in implementing a transaction was not only to comply with the Codes of Good Practice on BBBEE, but to establish a sustainable social investment that will make a difference in the lives of disadvantaged South Africans,” the Grindrod statement
said further.

“We have a successful business relationship with Calulo and have already partnered with them in our South African marine bunkering and coastal shipping operation. They know the industry and add significant commercial value to the deal,” said Alan Olivier, CEO of Grindrod Ltd.

“The third party in this transaction, Adopt-a-School Foundation, fits very well with Grindrod’s social responsibility focus which has always been to support education initiatives.

“This is the first such transaction to be concluded by the Adopt-a-School Foundation and will ultimately create sustainability for Adopt-a-School, whose current model relies entirely on donations from third parties. This sustainability will be created through GSA directing its corporate social investment expenditure to Adopt-a-School from the inception of the transaction,” he added.

“This will ultimately result in a capital profit to the Foundation on the disposal of its investment in GSA after the 10-year lock-in period, which will create a sustainable platform from which it can further extend the reach of the work that it does.“

Staff reporter

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