Safeen Feeders, the liner shipping arm of Abu Dhabi’s AD Ports Group (ADP), is teaming up with grain trader Invictus Investment to launch a new bulk shipping operator.
The two companies are expected to invest around AED 463m ($126m) to own and operate five dry vessels under a long-term contract.
The vessels of varying sizes will be deployed within six months, starting in September 2022.
Additional vessels are envisaged as part of future growth plans.
The vessels will be purchased through Special Purpose Vehicles, owned 85% by United Arab Emirates-based Safeen and 15% by Invictus Investment.
Safeen will take a 51% stake in a joint venture to operate the service, with Invictus owning the minority stake.
The company is being formed as the carrier for Invictus’ dry-bulk trading business. The grain trader currently ships more than three million tonnes of commodities annually, principally wheat and complementary grains.
Most of the vessels will be deployed to support the in-house business, but the company also envisages offering commercial bulker services to third-party companies.
The focus of operations will be on the Red Sea and Pacific corridors, the Indian sub-continent as well as the Black Sea region
Invictus, which was listed on the Abu Dhabi Securities Exchange in June 2022, will commercially operate the vessels.
Diversification
The move is a further diversification for Safeen Feeders, which was launched in 2020 initially operating regional feeder container services.
The company has built a significant fleet of second-hand container tonnage comprising 10 vessels, although most of the recent investments have been in dry bulk.
In July, the company acquired two supramax bulkers to kickstart a move into dry bulk in collaboration with Bangladeshi conglomerate Said Powertec.
Safeen provide eight supramax bulk carriers on bareboat and time charters to a jointly owned and operated bulk shipping services company.
AB Group chief executive Captain Mohamed Juma Al Shamisi confirmed that his company was looking to expand the diverse portfolio of international dry bulk services.
“Aligning Safeen Feeders shipping expertise with Invictus’ diverse sourcing network will help create a significant new operator, with global reach and a modern fleet,” he said.
“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,” added Invictus chief executive Amir Abdellatif.
