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SAFEEN Feeders, Saif Powertec sign long-term charter agreement

SAFEEN Feeders to invest $101 million to purchase three containerships for leasing out to Saif Powertec.

SAFEEN Feeders, Saif Powertec sign long-term charter agreement
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Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group (right) and Tarafder MD Ruhul Amin, Managing Director, Saif Powertec, sign the long-term charter agreement between SAFEEN Feeders and Saif Powertec.

AD Ports Group's SAFEEN Feeders and Bangladesh-based Saif Powertec have signed a charter agreement that will see SAFEEN Feeders purchase and charter out three containerships to support expansion of Saif Powertec into the container shipping segment.

"Under the terms of the agreement, SAFEEN Feeders will charter an initial three vessels to Saif Powertec at pre-agreed rates for a duration of 15 years, starting in November 2022 to be deployed on global routes connecting Bangladesh," says a release from AD Ports.

SAFEEN Feeders will invest approximately AED 375 million ($101 million) to purchase the vessels, the release added.

Captain Ammar Mubarak Al Shaiba, Acting CEO of the Maritime Cluster and SAFEEN Group, AD Ports Group, says: "Under the guidance of our wise leadership, AD Ports Group continues to support the opening of new routes to stimulate global trade and drive new economic opportunities. Leveraging SAFEEN Feeders' expertise as a leading maritime service provider, this containership charter agreement with Saif Powertec will help meet surging container traffic demand along Bangladesh-bound routes. We have structured the agreement to reduce exposure to market volatility and ensure a positive return on our investment in these vessels."

Tarafder MD Ruhul Amin, Managing Director, Saif Powertec, adds: "We are delighted to expand our ongoing partnership with AD Ports Group's SAFEEN Feeders through this new charter agreement, which will enable us to expand our portfolio of container shipping services. Bangladesh has been underserved by direct services and this new agreement will enable us to fill a substantial gap in the market and drive UAE-Bangladesh trade.

"The intention is to charter three vessels at the outset, offering 1,700–2,100 TEU capacity each, which will enable Saif Powertec to realise significant returns on this route and deliver real benefits for our customers."

SAFEEN Feeders had signed a long-term trade facilitation and shipping agreement with Saif Powertec in April 2022 to facilitate trade and cargo services from Fujairah to Bangladesh over a period of 15 years. As part of the collaboration, SAFEEN Feeders is providing eight Supramax bulk carriers with 55,000 Deadweight Tonnage (DWT) capacity, the release added.

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