Danish shipping giant A. P. Moller-Maersk has partnered with South African shipping service provider Grindrod Limited to enhance its capabilities as a global integrator of logistics in South Africa.
Through this proposed joint venture, the logistics activities of Grindrod Intermodal business and the ocean activities of Ocean Africa Container Lines (OACL) will complement Maersk’s current Ocean capabilities and Logistics & Services, the company revealed.
Maersk will have a 51% share in this proposed joint venture which will increase access to landside infrastructure and capabilities which are critical to delivering reliable logistics solutions.
“We will have a far greater ability to … integrate solutions between ocean and the landside whilst weaving into our organisation an increased capability and experience through colleagues from Grindrod, who has long held a … reputation in the landside logistics space,” said Jonathan Horn, Maersk Southern Africa and Islands Area Managing Director.
Bringing together logistics operations skills and capabilities under this new proposed joint venture will “create a base for growth and enable Maersk to excel in the Logistics & Services products execution through better-serving customers via intermodal solutions in trucking, rail, depots, warehousing, and ocean feedering,” according to Maersk.
The transaction is subject to obtaining regulatory approvals, including required competition law approvals. The new organization will be formed and go live within a few weeks of approval being granted by relevant regulators. Until then both companies remain separate and will continue to conduct their businesses independently.
The announcement follows the company’s partnership with compatriot wind turbines manufacturer Vestas formed to improve door-to-door transport from the companies’ suppliers to their factories and service warehouses as well as containerized site parts and transport equipment.
Earlier this month, the Danish shipping major reported record earnings in the third quarter of 2021. The company’s Logistics & Services continued the positive momentum with revenue increasing 38 percent to $2.6 billion whereof 33 percent was organic. The growth was driven by a strong activity increase across all products.
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