Freight and logistics service provider Grindrod has a R10-billion project pipeline planned for sub-Saharan Africa, says Grindrod CEO Alan Olivier.

He says the capital expenditure for some of these projects has already been approved by the Grindrod board – R1.6-billion from 2014 to 2016.

The remaining projects are in various stages of development, and have either already been costed or are awaiting regulatory approval or commitment from customers.

All the projects are aimed at creating new or replacement infrastructure in sub-Saharan Africa, allowing Grindrod to better service trade flows on the continent.

“We have the intention to raise R3-billion to support the pipeline of projects we have,” says Olivier.

The Grindrod board has already approved this proposal.

“We remain focused on developing infrastructure – to use the opportunities we have to leverage that infrastructure to be a supplier of choice for logistics solutions,” says Olivier.

One of the projects Grindrod recently secured is the opportunity to work with Northwest Rail Company to build, operate and maintain a new 590 km Cape- gauge railway from Chingola, in the heart of the old Zambian Copperbelt, to the Angolan border.

Rail is already big business for Grindrod.

Grindrod Freight Services Ports & Rail CEO Dave Rennie says the group has doubled capacity at its locomotive production plant in the last year.

Locomotive build opportunities less than a year out stand at around 30 units, with another 34 possible more than a year out.

Rennie says Grindrod is expanding the locomotive model range it is bringing to market.

The group’s focus “is outside” South African rail parastatal Transnet, targeting mainly industrial and mining complexes in Africa requiring locomotives.

Looking at the general business environment in which Grindrod operates, Olivier says industrial commodity demand continued globally, with economic growth in Africa still strong and “infrastructure opportunities intact”.

There is also continued growth in global dry-bulk seaborne trade, but severe competition and pricing volatility in the agricultural commodity market.

Grindrod saw volumes at its Maputo port increase 15% in 2013 to 17.2-million tons. Vehicles moved at the Maputo car terminal increased 50% after a doubling in capacity last year, to 71 368 units.

Following a poor performance in the agricultural commodity trading market, Grindrod is repositioning and reviewing its agricultural business, in a process that should be completed this year, says Olivier.

Grindrod in February reported revenue of R32-billion for the year ended December 31, 2013, down from R35.26-billion in the 2012 financial year, a period which was boosted by the 50% sale of Cockett Marine Oil.

Trading profit for the 2013 financial year was R1.78-billion, up from R1.44-billion.