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Grain hopper wagon leasing deal to benefit Mozambique, Malawi and South Africa

18th March 2016

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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GPR Leasing Africa (GPR), a joint venture between Grindrod Freight Services and the Pembani Remgro Infrastructure Fund, will deliver the first grain hopper wagons to Corredor De Desenvolvimento Do Norte (CDN), in Mozambique, this month.

This follows the parties signing a five-year agreement for the lease of 100 grain hopper wagons to CDN in October 2015. CDN operates on the Nacala corridor, which comprises the Port of Nacala, in Mozambique, the Northern Railway network, in Mozambique, and the railway system in Malawi.

The lease is supported by CDN’s transport agreement with Bakhresa Malawi, which owns a grain terminal in Nacala, a milling and packing facility in Malawi and part of the Bakhresa Milling group, which has operations across East and Southern Africa.

The wagons will be manufactured by and bought from Galison Manufacturing, in Welkom, South Africa.

“We are essentially supplying an African solution that will benefit three African countries,” GPR CEO Jacques de Klerk says.

GPR commercial executive Willem Goosen adds that the deal is its first innovative wagon lease in Africa and that the freight wagon lease pipeline is substantial, with many additional deals to follow shortly.

Meanwhile, CDN director André Soares notes that the new wagons will offer many benefits. “These are built using the latest design and technology programmes, which means they are lighter and will be more efficient and productive.

“We will gain payload, about 5 t per wagon, enjoy fuel efficiencies and lower our operating costs, while driving up revenue. The leasing agreement means the wagons are not on our balance sheet and we haven’t had to spend any capital. “This, in turn, improves our cash flow and allows us to optimise our funds and concentrate on our core activities,” he adds.

The wagons also incorporate the latest safety technology and will be more environment-friendly than older, heavier wagons.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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