Grindrod CEO on how the company is weathering the COVID-19 storm

Shipping and logistics group, Grindrod, has reported a wider loss of 34.2 cents per share in the six months to June, reflecting a 92% increase from the previous comparable period. The disruptions caused by the COVID-19 pandemic and subsequent lockdowns have significantly impacted the company's operations. However, there is a glimmer of hope as CEO Andrew Waller discusses the changes they have witnessed since June and their outlook for the future. With borders opening and mineral exports picking up, there is optimism regarding the recovery of shipping activities. Waller highlights the increase in mineral exports, particularly iron ore and copper, which has significantly boosted their operations. He also notes a surge in the export of citrus products, indicating a strong performance in the agri sector. Despite challenges in container inbound activities, Grindrod is actively managing the situation by deploying contingency solutions to address congestion at ports. Waller expresses concerns about the upcoming year-end peak season and the potential impact on shipping volumes. In terms of South Africa's economy, Waller predicts a positive outlook for the mining sector due to robust mineral prices and efficient logistics support for commodity exports, especially to China. The successful citrus season further contributes to optimistic projections. However, uncertainties loom regarding a possible second wave of COVID-19 and its implications for future lockdown measures. Grindrod's operations extend beyond South Africa, with a significant presence in Mozambique, Zambia, Zimbabwe, Tanzania, and Namibia. Despite lower testing levels in these regions, Waller notes a lower incidence of COVID-19 among employees compared to South Africa. He attributes this trend to potential factors such as prior vaccination with BCG vaccine. The company remains vigilant and continues to monitor the situation closely to ensure the safety of its workforce. Looking ahead, Waller discusses Grindrod's plans for expansion in Mozambique, emphasizing the resilience of their earnings in diverse markets. As the company navigates through the challenges posed by the pandemic, a strategic approach to operations and a focus on adaptability are crucial in sustaining business continuity and driving growth in the shipping and logistics sector.