Grindrod suspends port operations in Mozambique after border closure

Logistics company Grindrod has suspended port and terminal operations in Mozambique after South Africa temporarily closed the main border with its northeastern neighbour over safety concerns after a violent crackdown on post-election protests, the company said on Thursday.

The suspension will hit the movement of goods and commodities in a region already battling with logistical bottlenecks as underfunded state-owned port and rail companies struggle to provide adequate services.

At least 18 people have been killed in the protests, human rights groups have said, as opposition supporters demonstrate against what they say is a fraudulent election win by Frelimo, the party that has ruled Mozambique since 1975.

South Africa's border authority said on Wednesday that it had closed the Lebombo border after receiving reports of vehicles being torched on the Mozambique side.

A Grindrod statement said it had suspended port and terminal operations in Maputo and Matola after the border closure and suspension of rail services.

The company is part of a consortium granted a concession to operate the Maputo port alongside DP World, the Mozambican Railway Company and Gestores, a private Mozambican company.

Maputo port reported record volume growth in 2023, partly owing to increased coal and chrome export volumes diverted from South Africa, where state-owned Transnet is failing to provide adequate rail and port capacity.

In 2023 Maputo port handled a record 31.2-million tonnes of cargo, mostly minerals including copper, chrome, ferrochrome and coal, up 16% on the previous year.

Reuters