South African Shipping

Powerful new partnership for Grindrod

Andrew Sturrock, CEO of the merged company
Andrew Sturrock.jpg

Grindrod and Sturrock Shipping have jointly announced the merger of their respective ship agency operations in a 50/50 joint venture.

The merger is expected to take effect from 1 November 2012, with the portion of the merger relating to the Namibian agency company still being subject to Namibian competition commission approval.

This merger follows on from the successful acquisition by Sturrock Shipping of a 15% shareholding in Röhlig-Grindrod (Pty) Ltd.

“We are extremely pleased to have cemented the relationship with Sturrock Shipping and our BEE partner, Calulo,” said Hylton Gray, CEO Grindrod Logistics.

He said the joint venture will present many business opportunities across both local and international markets, as well as achieve the two companies’ collective aspirations of a minimum level 3 BEE rating for the South African operations.

The combined ship agency business is represented across Africa and Australia through long established brands, with both Grindrod and Sturrock Shipping having brands that are over 100 years old. The independent brands will continue to be operated under the combined business.

Where Grindrod has a strong market presence in the dry bulk space, providing services to both liner and non-liner clients, Sturrock Shipping is primarily involved in non-liner wet bulk activities.

Whereas Sturrock Shipping has a significant footprint in Sub-Saharan Africa and Australia, Grindrod’s ship agency operations are conducted in southern Africa only. As a result, significant synergies and market opportunities are expected to arise from the merger of these two businesses.

“Amassing a significant amount of expertise across the ship agency spectrum allows us to offer increased services to the global shipping industry," said Andrew Sturrock, who has been appointed Chief Executive Officer of the merged business.

“Combined with Grindrod’s port and infrastructure thrust into Africa we look forward to continued expansion of the agency business into emerging markets.”

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