BBR clarifies shareholding structure

A BBR locomotive hauling goods at Mbalabala in this file picture. BBR said although the locomotive has Grindrod logos and colour, it was only because it was the manufacturer not the owner of the locomotive

Business Reporter
BEITBRIDGE-Bulawayo Railways is owned by New Limpopo Projects Investments Limited (NLPI) which holds 85 percent while the Zimbabwe Government controls 15 percent through the National Railways of Zimbabwe, the company has said.

In response to reports that South African integrated services company Grindrod was a major shareholder in NLPI, BBR in a statement, said the South African company did not hold a controlling stake in NLPI hence could not be owning BBR.

“It (Grindrod) is but one of a number of shareholders (of NLPI). This means neither NLPI nor BBR are subsidiaries of Grindrod. Among the shareholders of NLPI are: Old Mutual (SA), Nedbank (SA), Sanlam (SA) and NLP, which comprises Grindrod and private business individuals,” said BBR, contrary to reports carried by this publication on 13 March.

BBR added that in fact Grindrod Rail Consultancy Services has been given a management contract in respect of the management of BBR’s railway operations.

It also added that it was BBR and not Grindrod which had planned to a $5 million-upgrade works on its projects in the country.

BBR added that even locomotives that are branded Grindrod that are operating in Zimbabwe belonged to BBR and not to the South African company.

“The locomotive in the picture (used by this publication) was manufactured by Grindrod and therefore bears the Grindrod logo, in the same way that a car bears a manufacturer’s logo, but it is owned by BBR. The picture therefore is of a BBR train pulled by a BBR locomotive manufactured by Grindrod.”

The company added that Mrs Thembi Moyo, who is BBR Chief Executive Officer and was quoted in the story, represents BBR and not Grindrod.