Grindrod Halts Port Operations in Mozambique Following Border Closure

Photo : Reuters

Grindrod, a logistics company, has announced the suspension of its port and terminal operations in Mozambique following the closure of the South African border due to safety concerns after violent protests erupted in Mozambique. These protests, stemming from allegations of electoral fraud by opposition groups, have resulted in at least 18 fatalities.

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South Africa’s border authorities decided to temporarily close the Lebombo crossing after receiving reports of vehicles being set on fire on the Mozambique side. As a result, Grindrod has suspended its operations at the Maputo and Matola ports, as well as rail services in the area.

This disruption comes at a time when the region was already facing logistical challenges due to bottlenecks and underfunded state-owned rail and port companies. The suspension further impacts the movement of goods, especially as the region heavily relies on the Maputo port for exports of minerals such as copper, chrome, ferrochrome, and coal. 

Grindrod is part of a consortium managing the Maputo port alongside DP World, the Mozambican Railway Company, and Gestores, a private company in Mozambique. The port had experienced significant growth in 2023, handling a record 31.2 million metric tons of cargo, a 16% increase from the previous year. This growth was largely driven by the diversion of exports from South Africa due to capacity issues with South Africa's state-owned Transnet.

The closure of the border and the suspension of services are likely to worsen existing supply chain disruptions, further affecting the regional economy.

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