SAFEEN Feeders, Invictus to own/operate 5 vessels
Total capital commitment for 5 vessels will be $125mn
AD Ports Group's SAFEEN Feeders has signed an agreement with Invictus Investment to launch a new international dry bulk shipping service.
"The two companies will purchase ships through special purpose vehicles, owned 85 percent by SAFEEN Feeders and 15 percent by Invictus Investment. In addition, SAFEEN Feeders and Invictus Investment will form a joint venture to operate the service. The joint venture will be owned 51 percent by SAFEEN Feeders and 49 percent by Invictus Investment," says an official release from AD Ports.
The two companies are expected to initially commit approximately AED 463 million ($125 million) for the investment in the vessels, the release added. "Five ships of varying sizes are expected to be deployed within six months, starting in September 2022, with additional vessels envisaged as part of future growth plans."
Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, says: "This is an important agreement for AD Ports Group as we look to expand the diverse portfolio of international dry bulk services that we provide for customers and strengthen food security in the region and around the world. Aligning SAFEEN Feeders shipping expertise with Invictus' diverse sourcing network will help create a significant new operator, with global reach and a modern fleet."
Amir Abdellatif, Chief Executive Officer, Invictus Investment Company, adds: "Invictus Investment has rapidly developed into a multi-continent operational reach to support trade of a wide variety of commodities, agro-foods, and finished goods.
"This agreement with AD Ports Group ensures our commitment to investing in businesses that add synergies and value to our expanding trading business, and in building strong strategic partnerships. It is further aligned with our focus on investing in fixed assets to strengthen our logistics capacity. This will enable us to not only enhance efficiency in our operations, but will also support us as joint venture partners to grow together as a new international shipping service."
The joint venture will serve as the carrier for Invictus' dry-bulk trading business, which currently ships more than three million tonnes of commodities annually, principally wheat and complementary grains. The majority of the ships' capacity will be provided to support this business, the release added.