Economy

MBABANE – In a major lifeline for Eswatini’s struggling coal and logistics industry, Grindrod Logistics Eswatini has launched diversification efforts that could save hundreds of jobs.

These are jobs that were previously tied to the country’s coal exports.

The company, one of Eswatini’s leading logistics operators in southern Africa, is actively engaging South African miners of other minerals to move their products through Eswatini.

Under the plan, 200 locally-owned trucks that have been idling due to the collapse in coal demand will be mobilised once again to haul commodities to Mpaka station. From there, the minerals will be loaded onto trains for onward transport to regional and international markets.

Grindrod Logistics Eswatini Director, Mkhululi Dlamini, confirmed that trial runs were already underway with new clients in South Africa.
“As promised, we are working hard to retain jobs in the logistics sector. Discussions with new clients are ongoing and while I cannot reveal the commodities at this stage, trial runs are already in motion. Once deals are finalised, the 200 trucks will be fully engaged again and additional jobs will also be created,” Dlamini said.

He noted that the downturn in coal had left the logistics sector operating at barely 50 per cent of its normal capacity. Many transport operators who invested heavily in trucks for coal haulage have been pushed to the brink, facing repossession of their assets. Grindrod’s move, he added, is aimed not only at sustaining jobs but also at preventing the collapse of a vital segment of Eswatini’s economy.

Grindrod’s diversification effort provides a rare ray of hope. By targeting other minerals and expanding beyond coal, the company aims to not only protect existing jobs but also create new opportunities in the logistics value chain.

“Once these new contracts are finalised, it will be a win-win. Truckers will have work, Eswatini Railways will benefit from increased freight volumes and the economy will earn critical revenue through fuel levies and border duties,” Dlamini explained.

Eswatini Railways, one of the biggest beneficiaries of Grindrod’s operations, relies heavily on coal shipment for revenue. The decline in coal has threatened its income stream. A rebound through alternative minerals could restore stability.

SA’s worsening mining picture

MBABANE - The challenges are not confined to Eswatini.

In South Africa, the National Union of Mineworkers (NUM) has warned of widespread job cuts, with Glencore and Samancor recently confirming retrenchment processes that could affect more than 3 000 workers.

NUM Chief Negotiator, Lefty Mashego, described the retrenchment plans as a “serious blow” to workers and their families. “We are talking about more than 3 000 employees affected. Multiply that by the number of families supported, and the economic impact is devastating,” Mashego said.

Transportation Council welcomes breakthrough

MBABANE - Chairman of the National Road Transportation Council (NRTC) Sihlangu Nhlabatsi confirmed the Council’s involvement in the new project.

“We can confirm that trial runs have started, and our members are being engaged. We truly appreciate Grindrod’s commitment to finding jobs for our truckers amid these challenges. This is a timely intervention that brings hope to many families that depend on the logistics sector,” Nhlabatsi said.

Truckers have been among the hardest hit by the coal slump. At the height of the boom, Eswatini’s transport corridors bustled with trucks ferrying coal to Mpaka and beyond. Today, many of those vehicles stand idle, their owners weighed down by loan repayments and dwindling contracts.

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Grindrod Logistics Eswatini has launched diversification efforts that could save hundreds of jobs. (Pic: Courtesy)