Logistics giant Grindrod has suspended its port and terminal operations in Mozambique after South Africa closed its main border with its northeastern neighbor due to safety concerns sparked by violent post-election protests. The suspension is expected to disrupt the movement of goods across the region, which is already struggling with logistical challenges due to underfunded state-run port and rail services.
Human rights organizations have reported that at least 18 people have been killed in the ongoing protests, where opposition groups have accused Frelimo, the ruling party, of rigging the election results. Tensions escalated following claims of a fraudulent election victory, leading to widespread demonstrations.
South Africa’s border authority closed the Lebombo border on Wednesday, following reports of vehicles being set alight on the Mozambique side of the border, further compounding the already volatile situation.
In response to the border closure and suspension of rail services, Grindrod, a key operator in the region, confirmed the suspension of operations at both Maputo and Matola ports. The company is part of a consortium that operates Maputo port alongside DP World, the Mozambican Railway Company, and Gestores, a private Mozambican firm.
The suspension comes at a time when Maputo port had been seeing record growth, handling 31.2 million metric tons of cargo in 2023, a 16% year-on-year increase, largely due to the diversion of coal and chrome exports from South Africa. South Africa’s state-owned rail and port authority, Transnet, has faced persistent capacity challenges, prompting companies to shift operations to Maputo.
The closure of the border and the subsequent operational halt at key logistics hubs is expected to exacerbate the region’s supply chain difficulties, raising concerns over economic impact and trade disruptions in the coming weeks.
