JSE-listed ports and logistics group Grindrod is still on the hunt for a new CEO following Xolani Mbambo’s June resignation.

Speaking during the company’s financial results announcement for the six months ended June 30 on Friday, chairperson Cheryl Carolus said the company was working with a talent search specialist as it looked for a successor, both internally and externally.

She said Mbambo’s notice period would end on December 31, and that a new CEO should be in place before this date.

Mbambo said a heartfelt goodbye to the Grindrod team during his last results briefing. He also attempted not to steal the Department of Transport’s (DoT’s) thunder as it later that morning announced that 11 private train operating companies were granted access to the Transnet rail system under government’s new open access programme.

However, the company later officially confirmed that it had been allocated a slot on one of Transnet’s 41 routes, on the Northeast Corridor.

According to the DoT, there will be six new entrants on this corridor, with its 16 routes for the transportation of coal, chrome, magnetite, fuel and containers.

Mbambo noted at the results briefing that Grindrod had repatriated its locomotive fleet from Sierra Leone in order to participate in the open-access programme, and that it was currently refurbishing this fleet of 13 locomotives for the purpose of deployment on its allocated route.

Four locos had already been refurbished, five were expected to be completed in August/September, with the remaining four to be up and running early next year.

Mbambo said the locos were well-suited to the Northeast Corridor.

He added that Grindrod would use its existing loco fleet until it understood the issues around operating on this corridor, and then, “once comfortable” – and with the fleet achieving above-90% utilisation – management would approach the board for an incremental investment.

Grindrod reported an 8% drop in core revenue, to R3.47-billion for the first six months of the year compared with the same period last year. Core trading profit was down 2%, to R1-billion.

Mbambo said the results were underpinned by a strong second-quarter recovery at the Matola terminal and the Port of Maputo, in Mozambique, with the corridor rebounding to deliver faster turnaround times and record cargo volumes.

The route saw reduced cargo flows at the end of last year following violent domestic protests against the outcome of Mozambique’s October elections.

The first half of the financial year also saw Grindrod’s exit from the noncore marine fuels business and the end of its north-coast property loans exposure.

The group also acquired the remaining 35% stake in the Matola terminal and was now the full owner, strengthening its pit-to-port-to-market offering.

The group also signed an agreement with Transnet National Ports Authority, in partnership with Eyamakhosi Resources, to develop and operate a container handling facility at Richards Bay.