Logistics company Grindrod has suspended port and terminal operations in Mozambique following South Africa’s temporary closure of the main border with its northeastern neighbor.
The border closure was enacted over safety concerns due to violent post-election protests in Mozambique, which human rights organizations report have resulted in at least 18 deaths.
The suspension is expected to impact goods and commodities transport in a region already grappling with logistical bottlenecks.
State-owned port and rail services in Mozambique, which are underfunded, have struggled to keep up with demand.
The border closure was announced by South Africa’s border authority on Wednesday after reports emerged of vehicles being set on fire on the Mozambican side.
Grindrod subsequently halted operations at its port and terminal facilities in Maputo and Matola, citing the border shutdown and disrupted rail services as primary reasons.
Grindrod is part of a consortium that holds a concession to operate the Maputo port, alongside DP World, the Mozambican Railway Company, and private firm Gestores.
The port saw significant growth in 2023, handling a record 31.2 million metric tons of cargo, up 16% from the previous year.
This growth was driven in part by increased coal and chrome exports redirected from South Africa due to capacity constraints at South Africa’s state-owned logistics company, Transnet.
The temporary halt in operations may disrupt the movement of critical minerals, including copper, chrome, ferrochrome, and coal, through one of the region’s busiest transport hubs.
