South African businesses in and around flood-stricken Durban, Pietermaritzburg and the broader KwaZulu-Natal area are desperately juggling the assessment of damage to their infrastructure and stock while trying to keep trading and simultaneously ensuring their staff are safe.
The impact to Grindrod includes damage to equipment and infrastructure. Efforts to recover customer containers and restore facilities have commenced, in collaboration with the company’s insurers. The events of the past week will undoubtedly have an impact on this momentum, but shareholders do not seem too fazed and the share was up marginally to R6.60 on the day. Grindrod did add that its damaged equipment and facilities are all insured, including cover for business interruption.
Maersk notes that no indication has been given regarding the extent of the rail damage and the company expects a lengthy period until operations are restored.shipping lines have already confirmed that its export shipments will be delayed. In addition, its Saiccor, Tugela and Stanger mills have been impacted. Production has been stopped, some inventory is damaged and deliveries to domestic customers have been affected.
“The distribution centre has been temporarily closed to ensure the safety and wellbeing of our employees and to commence recovery operations,” CEO Leon Lourens announced in a statement.