Oiltanking GmbH, Grindrod Ltd and Calulo Investments (Pty) Ltd today announced that through their South African joint venture associate company, Oiltanking Grindrod Calulo (Pty) Ltd they have entered into an agreement to acquire the business of Grindrod Tank Terminals a division of Grindrod (South Africa) (Pty) Ltd. In so doing, OTGC adds a liquid bulk terminal in Durban and Cape Town to the global network of Oiltanking. The business further consists of a specialized road tanker fleet.
The joint venture finalized in 2011, consists of Oiltanking, as the lead operating and managing partner with a 46% shareholding, Calulo Petrochemicals holding a 16% stake, with the remaining 38% shareholding held by Grindrod. The transaction to acquire the Grindrod Tank Terminals business, is subject to relevant regulatory approvals. Both terminals play a key role in the importation and redistribution of molasses and vegetable oils. Besides these products, the company has secured licenses to store and handle other high flash products.
The acquisition expands the relationship between Oiltanking, Grindrod and Calulo, leveraging the Oiltanking’s international know-how and expertise in liquid bulk logistics and the existing presence of Grindrod Ltd and Calulo in the South African market where there is a great need for its services. It gives OTGC an immediate presence in two key ports, of which one is the busiest in Africa and provides operational foundation for further expansion activities.
“We believe that OTGC have the expertise and credentials to capitalize on tank terminal development opportunities in South Africa and that amalgamating Grindrod Tank Terminals with OTGC is in line with this strategy”, said Dave Rennie, CEO Grindrod Freight Services – Ports & Terminals. OTGC is also the preferred bidder for the bulk liquid terminal in the Port of Coega where it expects to sign a definite agreement with the South African Port Authorities in the near future.