AD Ports Group’s SAFEEN Feeders has signed an agreement with Invictus Investment to launch a new international dry bulk shipping service for which they plan to buy five bulkers.
The two companies plan to purchase ships through special purpose vehicles, owned 85% by SAFEEN Feeders and 15% by Invictus Investment. Total investment is said to be worth AED 463 million ($126 million).
In addition, SAFEEN Feeders and Invictus Investment will form a joint venture to operate the service. The joint venture will be owned 51% by SAFEEN Feeders and 49% by Invictus Investment.
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.
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.
“ 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, ” Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said.
“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,” Amir Abdellatif, Chief Executive Officer of Invictus Investment Company, said.
The joint venture wants to extend its commercial bulk shipping services to other companies globally, with an initial focus on the Red Sea and Pacific corridors, the Indian sub-continent as well as the Black Sea region.