TRANSFORMING LOGISTICS

Grindrod Logistics, led by CEO Derek Mans, is making waves in the South African logistics sector, leveraging technology and strategic partnerships to drive growth and efficiency. In a recent interview with Journal of African Business, Mans shared insights into the company’s vision, its collaboration with Maersk, and its commitment to sustainability. From data analytics to electric handling equipment, Grindrod Logistics is transforming the way goods move across Southern Africa, setting the stage for a future where innovation and operational excellence lead the way.

CEO Derek Mans is upbeat about South Africa’s economy and the role that Grindrod Logistics can play in unlocking value for customers through the intelligent use of data analytics.

Can you share the company’s vision for the future of the South African logistics sector?

The vision is to be the market leader in inland container-depot warehousing, transport and reefer products in South Africa and eventually Southern Africa with a very strong technology enabler running the business.

How does the partnership with Maersk enhance your capabilities?

Grindrod Logistics (GLO) is a JV with 51% owned by Maersk. With two powerhouses as shareholders, it assists in the broader scheme of things but especially when it comes to brand recognition. The decision to keep the Grindrod name was a testament to a good brand. Maersk understands the dynamics of the shipping industry and having a partnership with a global shipping company is a massive enabler for inland logistics. Utilising excellent cold-chain services and making sure that orders are completed on time is probably the most important part of the partnership.

What sets GLO apart in terms of the end-to-end logistic solutions?

We have our own infrastructure from pick-up to drop-off, all the way to stacks (piles of items). We manage and can control the movement of our customers' goods under one umbrella with no third-party handovers. In mining, we offer pit-to port. Our new management is making sure that we make full use of the superb infrastructure and strategic positioning that Grindrod has in South Africa.

Can you give an example?

If you are servicing the mining industry, the one way to lose a customer is to not hit stacks in time because the price of commodities goes up and down. That can be significant if you are moving 15 000 tons of magnetite, as we have done for a customer. We have 13 warehouses and 120 000m² of space. Our annual output is about 2.2-million tons from the warehouses, and we move about 28 000 units a year on rail and about 480 000 units by road.

What is GLO doing in terms of sustainability?

We have gone electric with our handling equipment at depots. Transnet needs to put charging systems in ports to create that support infrastructure. What we can do is more rail and we do push as much of that as possible. A third of our facilities have solar power and in the next two years, all facilities will have it. We have changed our light bulbs and we are monitoring our emissions output on a monthly basis.

Is the Maersk global commitment to sustainability influencing Grindrod Logistics’ targets?

Absolutely. Our core values are based on Maersk’s. Our shareholders require it.

Is GLO involved in projects to improve the flow of goods?

We work closely with Transnet. At Maydon Wharf in Durban, we have a very close relationship with Transnet National Ports Authority and the property division. We do what we can within our boundaries.

Is Transnet on the mend?

I do believe so. We have a no option but to fix the ports. There is the prospect of a global tariff war. I don’t believe that will impact our whole economy, but it’s going to impact a big part of it. Then we must ask, does BRICS come and save the day? BRICS contains countries with good growth rates and investment potential. We are going to see if BRICS can actually play a part in assisting growth.

With the market poised for growth what are some of the trends that you foresee?

I am obsessed with absorbing information and I am a serial subscriber. The top 10 articles right now from journals and bodies like Harvard Business Review, Forbes and S&P are all about AI. It’s about time that we realise that it is real. Technology and the one who is the most up-to-date with their technology, is the one who is going to win.

We need to be future-proofed. How do I believe AI will play a role in logistics? Nobody is going to give an app a container of tobacco worth R20-million to move because you need to hold someone accountable. But for business intelligence (BI), AI will be vital. I am very much a big-data BI analytical freak. Information can be cut down and analysed, then you can offer operational-excellence initiatives, continuous improvement, cost saving and guidance on revenue generation. AI is going to do all of that for us, take all of this big data in our system and tell us what we need to know long before we even try to figure it out. In the next three years it is going to be the one who is the most advanced who will come out on top.

And do you have a strong technology staff complement?

We do, but I have also recently hired a data science honours student because we are busy implementing our Ground Command Centre which goes live in May. It is going to be the first of its kind in South Africa. It will be at our Denver facility in Johannesburg, pictured, and it will not only be about transport.

We have 19 depots with hundreds of pieces of depot-handling equipment so that capability will be in there. A central repository will tell the depots which machines to use based on the hours that they have currently on the clock. We are also adding warehouse BI so it will be comprehensive.

Does the Maersk part of the partnership help to address areas like cost efficiency and delivery time?

Maersk has significantly assisted us in that regard. They have the correct processes in place from a global level all the way down the chain. They are already at the forefront of efficiency and what needs to be done in businesses. That’s one of the main areas where having a JV with Maersk as the main shareholder is invaluable, the sort of IP that they can share from an efficiency perspective and a sustainability perspective.

What is your key message regarding GLO’s commitment to South Africa’s trade and logistics infrastructure?

We are absolutely embedded with improving South Africa. Just before Donald Trump was elected and he said all of these things are going to happen with tariffs, I did a full study on what’s going to happen in South Africa with our economy. Our economy is actually in a better place than it has been for almost 10 years. I am not sure if anyone knows this.

We were expecting a 2% economic growth which would have guaranteed foreign investment but I think we hit 1.7%. The expectation is still that it will be 1.9% and S&P is saying that in three years we will be over 2%. I see South Africa in a really good place and I don’t want to deviate from my thought patterns in that regard: we have all had enough of negative vibes and energy.

I think we are going to get foreign investment. The Trump issues and the BRICS issues are going to play out, and we need to stand together and obviously work with Africa. We need to realise that we do provide the world with key minerals and commodities that they don’t have, copper, tobacco and lithium among others. We have lots of arable land.

We are a continent that can only get better and that is probably why China got involved at the right time; they think 100 years ahead.

We absolutely will play our part within the South African logistics industry. Our clients will benefit from knowing that we are here for them and we offer services that will assist their business in growth.

Assisting a client in growing is more important than anything else.

If we can help them in terms of infrastructure required or cash flow, let’s help them. I would say to a business owner: the economy is in a good space, trust it, trust your gut. Partner with the right partner, which is us, and let us help you along the journey.

Read the article in The Journal of African Business here