OILTANKING, Grindrod and Calulo Investments said on Friday they had agreed to buy Grindrod Tank Terminals, a division of Grindrod South Africa, through their South African joint venture company, Oiltanking Grindrod Calulo, a bulk liquid storage provider in South Africa.
The acquisition, the price of which has not been disclosed, adds a liquid bulk terminal in both Durban and Cape Town to the global network of Oiltanking. The business also consisted of a specialised road tanker fleet.
Both terminals played a key role in the importation and redistribution of molasses and vegetable oils. But the company had also secured licenses to store and handle other low volatility products.
“We believe that Oiltanking Grindrod Calulo has the expertise and credentials to capitalise on tank terminal development opportunities in South Africa,” Dave Rennie, CEO of Grindrod Freight Services for ports and terminals said on Friday.
Finalised in 2011, the Oiltanking Grindrod Calulo joint venture consisted of Oiltanking, the world’s second largest independent tank storage provider for petroleum products, chemicals and gases, as the lead partner with a 46% stake.
Calulo Petrochemicals, an African investment house with interests in mainly in petroleum and chemicals, and related service sectors, holds a 16% stake. The remaining 38% was held by Grindrod.
The acquisition expands the relationship between Oiltanking, Grindrod and Calulo, leveraging Oiltanking’s international expertise in liquid bulk logistics and Grindrod’s and Calulo’s presence in South African markets.
It also leverages the black economic empowerment credentials of Grindrod SA and Calulo.
Oiltanking Grindrod Calulo was the preferred bidder for the bulk liquid terminal in the Port of Coega, near Port Elizabeth, where it expected to soon sign a definitive agreement with South Africa’s port authorities.
Grindrod focused on transportation by road, rail and sea; the storage and handling of dry and liquid bulk commodities, and containers and cars.
Its operations also extended to commodity trading and financial services.