Maersk to form joint venture with Grindrod in South Africa

Maersk to form joint venture with Grindrod in South Africa
The Grindrod Group has over 100 years of experience in South Africa

Maersk has proposed a joint venture with Grindrod in South Africa, as it looks to improve its offering of logistics solutions, hoping to enable customers to access end-to-end supply chain solutions.

Through the potential agreement, 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 its Logistics and Services segment.

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.

Jonathan Horn, managing director of Maersk Southern Africa and islands area, said: “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.”

Xolani Mbambo, CEO of Grindrod Freight Services, stated: “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, although 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 organisation will be formed and go live within a few weeks of approval being granted by relevant regulators, noted the Danish company.

Until then both companies remain separate and will continue to conduct their businesses independently.