Business

126-year-old private company looks to expand onto South Africa’s rail systems

Jonathan Hoyle

 ·25 Aug 2026

Grindrod has seen its earnings grow with its ports and terminals leading the way, and is eyeing expansion into South Africa’s railways.

The private company operates several terminals at ports across South Africa and around the world, including the Ports of Durban and Richards Bay.

The company was founded in 1910 and has grown into a JSE-listed business with a presence in approximately 21 countries.

The group has reported EBITDA earnings of R884 million for the six months ended 30 June 2026, a 52% increase from the same period last year.

Across the company’s operations, port volumes increased by 29%, reaching 8.4 million tonnes, with dry bulk volumes at 8.1 million tonnes.

The group generated R561 million from its operations and noted that its port and terminal operations were a key contributor.

The group operates the Maydon Wharf, a multi-purpose terminal in the Port of Durban, which it said delivered strong growth.

Despite strong earnings from Grindrod, its South African revenue declined slightly, from approximately R1.71 billion in the 2025 interim period to roughly R1.65 billion in 2026.

The group’s logistics operations also weighed on earnings, with revenue from this sector decreasing from R1.38 billion in the six months ended 30 June 2025 to R1.27 billion in the same period in 2026.

Grindrod CEO Kwazi Mabaso said the logistics sector had achieved mixed results in the latest interim period.

“Logistics delivered a mixed result. Container, ships agency and clearing and forwarding traded in a soft market, while rail performance was impacted by reduced deployment,” he said.

The group also posted headline earnings of R593 million, largely unchanged from its 2025 interim reporting period.

The group’s headline earnings per share (HEPS) stood at 88.8 cents per share, while its interim dividend per share is 24.3 cents per share, a 6% increase from the 2025 interim period.

Expanding in South Africa

Grindrod is planning to expand its logistics operations in South Africa following an open-access agreement allowing private companies to utilise the country’s rail systems.

South Africa’s state-owned logistics company, Transnet, established the Transnet Rail Infrastructure Manager (TRIM) to facilitate the integration of private companies into its railway network.

Transnet then struck a deal with 11 private train operating companies and established a leasing company to support smaller operators entering the market.

One of the companies that entered into the agreement was Grindrod, with companies hoping to begin operations in late 2026 and into 2027.

Mabaso said the open access deal would be a significant step for the company, allowing it to expand its operations in South Africa.

“Execution of the rail access agreement is a particularly significant milestone. It positions Grindrod to participate in South Africa’s evolving rail landscape and creates the platform to unlock inbound capacity, expand integrated logistics solutions and strengthen competitiveness over the medium term,” he said.

“Preparations for the commencement of operations continue to advance, and rail is expected to become an increasingly important enabler of the Group’s growth ambitions”.

Mabaso said that Grindrod’s logistics operations were an important part of the company and helped port operations remain sustainable.

“Logistics remains the connective layer of Grindrod’s integrated model, ensuring terminal sustainability and long-term customer stickiness,” he said.

“Locomotive re-deployment is set to accelerate into the second half, and the executed rail access agreement positions the segment for a step-change contribution as Open Access commences in early 2027.”

Grindrod 2026 interim financial results