Grindrod is in a deal to build a new liquid bulk handling facility that it says will benefit its coastal tanker division.
The South African shipowner signed a joint venture deal with Germany's Oiltanking to build the terminal at Port Elizabeth.
Grindrod and Oiltanking said the first phase of the project calls for construction of 150,000 cubic metres (943,000 barrels) of refined products storage at Port Elizabeth.
Future phases of the project could add up to 550,000 cubic metres of storage. The terminal will service oil majors and international traders "all supporting the local shipping industry," according to an announcement from the two firms.
Grindrod said the new facility will benefit its Unicorn Tankers unit, which provides coastal shipping services. The company has previously said it was interested in building up its terminals business.
This will be the first South African terminal for Oiltanking, which is privately held by Hamburg's Marquard & Bahls family. Construction will begin at the end of this year, and is expected to be complete by 2019.
