Home Business Grindrod diversifies to rescue jobs as coal falters
Business

Grindrod diversifies to rescue jobs as coal falters

Share
Grindrod Logistics Eswatini has launched diversification efforts that could save hundreds of jobs. (Pic: Courtesy)
Share

MBABANE – In a major lifeline for Eswatini’s struggling coal and logistics industry, Grindrod Logistics Eswatini has launched diversification efforts that could save hundreds of jobs.

These are jobs that were previously tied to the country’s coal exports.

The company, one of Eswatini’s leading logistics operators in southern Africa, is actively engaging South African miners of other minerals to move their products through Eswatini.

Under the plan, 200 locally-owned trucks that have been idling due to the collapse in coal demand will be mobilised once again to haul commodities to Mpaka station. From there, the minerals will be loaded onto trains for onward transport to regional and international markets.

Grindrod Logistics Eswatini Director, Mkhululi Dlamini, confirmed that trial runs were already underway with new clients in South Africa.
“As promised, we are working hard to retain jobs in the logistics sector. Discussions with new clients are ongoing and while I cannot reveal the commodities at this stage, trial runs are already in motion. Once deals are finalised, the 200 trucks will be fully engaged again and additional jobs will also be created,” Dlamini said.

He noted that the downturn in coal had left the logistics sector operating at barely 50 per cent of its normal capacity. Many transport operators who invested heavily in trucks for coal haulage have been pushed to the brink, facing repossession of their assets. Grindrod’s move, he added, is aimed not only at sustaining jobs but also at preventing the collapse of a vital segment of Eswatini’s economy.

Grindrod’s diversification effort provides a rare ray of hope. By targeting other minerals and expanding beyond coal, the company aims to not only protect existing jobs but also create new opportunities in the logistics value chain.

“Once these new contracts are finalised, it will be a win-win. Truckers will have work, Eswatini Railways will benefit from increased freight volumes and the economy will earn critical revenue through fuel levies and border duties,” Dlamini explained.

Eswatini Railways, one of the biggest beneficiaries of Grindrod’s operations, relies heavily on coal shipment for revenue. The decline in coal has threatened its income stream. A rebound through alternative minerals could restore stability.

 

SA’s worsening mining picture

MBABANE – The challenges are not confined to Eswatini.

In South Africa, the National Union of Mineworkers (NUM) has warned of widespread job cuts, with Glencore and Samancor recently confirming retrenchment processes that could affect more than 3 000 workers.

NUM Chief Negotiator, Lefty Mashego, described the retrenchment plans as a “serious blow” to workers and their families. “We are talking about more than 3 000 employees affected. Multiply that by the number of families supported, and the economic impact is devastating,” Mashego said.

 

Transportation Council welcomes breakthrough

MBABANE – Chairman of the National Road Transportation Council (NRTC) Sihlangu Nhlabatsi confirmed the Council’s involvement in the new project.

“We can confirm that trial runs have started, and our members are being engaged. We truly appreciate Grindrod’s commitment to finding jobs for our truckers amid these challenges. This is a timely intervention that brings hope to many families that depend on the logistics sector,” Nhlabatsi said.

Truckers have been among the hardest hit by the coal slump. At the height of the boom, Eswatini’s transport corridors bustled with trucks ferrying coal to Mpaka and beyond. Today, many of those vehicles stand idle, their owners weighed down by loan repayments and dwindling contracts.

*Full article available in our publication.

Share
Written by
Nhlanganiso Mkhonta

Nhlanganiso Mkhonta serves as Business Editor at the Times of Eswatini. He reports on business, economics, finance, investment, entrepreneurship and public policy, producing insightful coverage and analysis of the issues driving Eswatini’s economy and the wider African business environment.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Don't Miss

Customary marriages declared in community of property

MBABANE – The High Court has declared the long-standing practice of treating marriages under Eswatini Law and Custom as being out of community...

Inyatsi Construction building foundations of First World future

For more than four decades, Eswatini has witnessed one of the most significant periods of infrastructure development in its history. Under the leadership...

No more USA Visa processing in Eswatini

MBABANE – In a move that will significantly alter travel logistics for Eswatini nationals, the United States Embassy in Mbabane will cease accepting...

King moves to save Ncangosini residents from eviction

KONTSHINGILA – Hundreds of residents living on a privately owned farm at Ncangosini, Kontshingila, are set to be spared from eviction after an...

Each MP set for E1m handshake

MBABANE – When the 12th Parliament assumed office in 2023, an ordinary Member of Parliament (MP) was earning a basic monthly salary of...

Related Articles

Eswatini among southern Africa’s fastest-growing economies

MBABANE – Eswatini is expected to remain among Southern Africa’s strongest-performing economies...

ERS coming for high-net-worth individuals

MBABANE – Eswatini Revenue Service (ERS) is seeking to ensure wealthy individuals...

SA economic woes cast shadow on Eswatini 

MBABANE – Eswatini remains one of Southern Africa’s stronger fiscal performers, although...

SADC banks resilient despite global economic pressures

EZULWINI – Regional banking systems have remained sound and well-capitalised despite mounting...