Palma is currently a focal point in terms of oil and gas developments in this part of the country.

Mbambo says the establishment of the logistics hub was postponed owing to insurgent activity in the region last year.

“We have since decided to continue with construction.”
The logistics hub will include fuel and container depots, while also catering for some engineering services.

Grindrod CEO Andrew Waller notes that French energy giant Total, which is developing a liquid natural gas project in the region, in December scaled down from 4 000 people on site, to 1 600 people, owing to rising security threats.

He says Mozambique has to address these long-standing and deep-seated security threats from religious insurgents “as a country”.

“We operate into northern Mozambique under the auspices of Total – they control the area under their watch,” notes Waller.

“Total has a significant security presence; there are many governments involved. But of course, we would love there to be a solution.

“We have scaled down a few people in that area, but we are largely the only means to get product into that region, as you cannot use truck transport.

“Our ships are highly critical to bring in fuel, food and water, as well as construction material. So far, we haven’t been involved in any skirmishes. We are in a secure zone Total has set out, and which is patrolled by various security forces.”

Grindrod operates seven ships into the region, all able to land on the beach.

The growth prospects for Grindrod in northern Mozambique remain “very exciting”, says Mbambo.

“From here we want to push on and entrench ourselves up east, to unlock Nacala, Zambia, Malawi and Mozambique. This really talks to Grindrod’s strategy to unlock trade corridors.”

Courtesy of Engineering News – full article here