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Grindrod encountered a "very challenging environment" in the first six months of the year, says CEO Xolani Mbambo.

"It's been difficult."

Reporting on the ports and logistics group's financial results to end June 30 in Johannesburg, Mbambo noted that China's economic growth had stalled, with Zambia and Zimbabwe both hit by droughts.

Mbambo described behemoth China as the main importer of what Grindrod moved on a daily basis, which included chrome, coal, manganese, lithium, graphite and copper.

The South African economy also remained depressed, and would "need some serious work to change the tide".

A diminished appetite for commodities had led to depressed commodity prices, which also did not aid the JSE-listed group, which remained coal-heavy despite efforts to diversify.

On the positive side, some good economic growth was evident in the East African and Indian markets, as well as in Mozambique.

Grindrod saw core revenue for the six-month period drop by 1% compared with the same period last year, to R3.77-billion, with trading profit down 7%, to R1-billion.

Mbambo said he was "slightly disappointed" in the numbers.

He also noted that he was "slightly concerned" with the market environment when looking towards the end of the year.

He said the possibility of an iron-ore glut was raising its head as new mines came online, with China not showing strong appetite for steel, either.

Energy demand in Europe had also tapered off, which impacted coal exports.

Lithium and graphite demand were also down.

Mbambo noted that Grindrod had to remain cost-conscious - "no frills" - if it wanted to sustain its margins going forward.

"We have a book of over R2-billion of capex, and possible mergers and acquisitions," he added.

"Those have to be strictly quality projects…and will have to "give us cash from day one."

The current focus of the group's capex was in the rail and port terminals space.

Grindrod had also repatriated 13 locomotives from a project in Sierra Leone to South Africa, and would overhaul these to be redeployed.