TRANSFORMING
TRANSFORMING LOGISTICSCEO Derek Mans is upbeat about South Africa’s economy and the role that Grindrod Logistics can play in unlocking valuefor customers through the intelligent use of data analytics.Can you share the company’s vision for the future of the South Africanlogistics sector?The vision is to be the market leader in inland container-depot warehousing,transport and reefer products in South Africa and eventually Southern Africa witha very strong technology enabler running the business.can be significant if you are moving 15 000 tons of magnetite, as we have donefor a customer.We have 13 warehouses and 120 000m² of space. Our annual output is about2.2-million tons from the warehouses, and we move about 28 000 units a year onrail and about 480 000 units by road.How does the partnership with Maersk enhance your capabilities?Grindrod Logistics (GLO) is a JV with 51% owned by Maersk. With twopowerhouses as shareholders, it assists in the broader scheme of things butespecially when it comes to brand recognition. The decision to keep the Grindrodname was a testament to a good brand. Maersk understands the dynamics of theshipping industry and having a partnership with a global shipping company isa massive enabler for inland logistics. Utilising excellent cold-chain services andmaking sure that orders are completed on time is probably the most importantpart of the partnership.What sets GLO apart in terms of the end-to-end logistic solutions?We have our own infrastructure from pick-up to drop-off, all the way to stacks(piles of items). We manage and can control the movement of our customers' goodsunder one umbrella with no third-party handovers. In mining, we offer pit-toport.Our new management is making sure that we make full use of the superbinfrastructure and strategic positioning that Grindrod has in South Africa.Can you give an example?If you are servicing the mining industry, the one way to lose a customer is tonot hit stacks in time because the price of commodities goes up and down. ThatWhat is GLO doing in terms of sustainability?We have gone electric with our handling equipment at depots. Transnet needs toput charging systems in ports to create that support infrastructure. What we can dois more rail and we do push as much of that as possible. A third of our facilities havesolar power and in the next two years, all facilities will have it. We have changedour light bulbs and we are monitoring our emissions output on a monthly basis.Is the Maersk global commitment to sustainability influencing GrindrodLogistics’ targets?Absolutely. Our core values are based on Maersk’s. Our shareholders require it.Is GLO involved in projects to improve the flow of goods?We work closely with Transnet. At Maydon Wharf in Durban, we have a very closerelationship with Transnet National Ports Authority and the property division. Wedo what we can within our boundaries.Is Transnet on the mend?I do believe so. We have a no option but to fix the ports. There is the prospect of aglobal tariff war. I don’t believe that will impact our whole economy, but it’s goingto impact a big part of it. Then we must ask, does BRICS come and save the day?18
LOGISTICSBRICS contains countries with good growth rates and investment potential. We aregoing to see if BRICS can actually play a part in assisting growth.With the market poised for growth what are some of the trends that you foresee?I am obsessed with absorbing information and I am a serial subscriber. The top 10articles right now from journals and bodies like Harvard Business Review, Forbesand S&P are all about AI. It’s about time that we realise that it is real. Technologyand the one who is the most up-to-date with their technology, is the one who isgoing to win.We need to be future-proofed. How do I believe AI will play a role in logistics?Nobody is going to give an app a container of tobacco worth R20-million to movebecause you need to hold someone accountable. But for business intelligence (BI),AI will be vital. I am very much a big-data BI analytical freak. Information canbe cut down and analysed, then you can offer operational-excellence initiatives,continuous improvement, cost saving and guidance on revenue generation.AI is going to do all of that for us, take all of this big data in our system and tellus what we need to know long before we even try to figure it out. In the nextthree years it is going to be the one who is the most advanced who will comeout on top.And do you have a strong technology staff complement?We do, but I have also recently hired a data science honours student because weare busy implementing our Ground Command Centre which goes live in May. Itis going to be the first of its kind in South Africa. It will be at our Denver facility inJohannesburg, pictured, and it will not only be about transport.We have 19 depots with hundreds of pieces of depot-handling equipment so thatcapability will be in there. A central repository will tell the depots which machinesto use based on the hours that they have currently on the clock. We are also addingwarehouse BI so it will be comprehensive.We were expecting a 2% economic growth which would have guaranteed foreigninvestment but I think we hit 1.7%. The expectation is still that it will be 1.9% andS&P is saying that in three years we will be over 2%. I see South Africa in a reallygood place and I don’t want to deviate from my thought patterns in that regard: wehave all had enough of negative vibes and energy.I think we are going to get foreign investment. The Trump issues and the BRICSissues are going to play out, and we need to stand together and obviously workwith Africa. We need to realise that we do provide the world with key mineralsand commodities that they don’t have, copper, tobacco and lithium among others.We have lots of arable land.We are a continent that can only get better and that is probably why China gotinvolved at the right time; they think 100 years ahead.We absolutely will play our part within the South African logistics industry. Ourclients will benefit from knowing that we are here for them and we offer servicesthat will assist their business in growth.Assisting a client in growing is more important than anything else.If we can help them in terms of infrastructure required or cash flow, let’s helpthem. I would say to a business owner: the economy is in a good space, trust it,trust your gut. Partner with the right partner, which is us, and let us help you alongthe journey.Does the Maersk part of the partnership help to address areas like cost efficiencyand delivery time?Maersk has significantly assisted us in that regard. They have the correctprocesses in place from a global level all the way down the chain. They are alreadyat the forefront of efficiency and what needs to be done in businesses. That’s oneof the main areas where having a JV with Maersk as the main shareholder isinvaluable, the sort of IP that they can share from an efficiency perspective anda sustainability perspective.What is your key message regarding GLO’s commitment to South Africa’s tradeand logistics infrastructure?We are absolutely embedded with improving South Africa. Just before DonaldTrump was elected and he said all of these things are going to happen with tariffs, Idid a full study on what’s going to happen in South Africa with our economy. Oureconomy is actually in a better place than it has been for almost 10 years. I am notsure if anyone knows this.Derek Mans, CEO of Grindrod Logistics.19
