One has to hand it to Ivan Clark, CEO of Durban-based shipping group Grindrod. Thanks to shrewd strategy with contracts and a thriving shipping market, profits have shot up by 650% in four years.
Unusually for a group in an apparently dull sector - shipping and logistics - the investor excitement generated by Grindrod has made it one of the business newsmakers of the year. Clark is often in the news, announcing exceptional interim and year-end results or another acquisition. Beyond the favourable shipping market, the group has steadily acquired businesses in road, rail and warehousing that complement its sea-borne business.
It recently forked out about R60m to acquire a 50% stake in Port Elizabeth-based Sheltam Locomotive & Rail Services. It also has 50% of furniture transporter Boltt Removals; and 76% of African Portland Industrial Holdings, which has terminal facilities in Walvis Bay and Maputo and bulk logistics operations in Johannesburg, Cape Town and Durban. Grindrod also took over Uniroute Logistics' container depot yard, warehouses and transit facilities.
Last year Clark told the FM that part of Grindrod's success was its strategy of acquiring entrepreneurial businesses and retaining their management expertise. This has worked so far, and if the shipping market continues to play ball, this group could retain the top spot for a long time.
