Dutch shortsea operator Longship Group has taken a 50% stake in Norwegian dry cargo broker Wagle Chartering to form an operator with a fleet of 40 shortsea dry cargo vessels.
The deal will help both companies strengthen their position in Scandinavia and enable them to take place in the ongoing consolidation of the dry bulk market, according to Longship chief executive Oyvind Sivertsen.
Moss-based Wagle has traditionally focused on operating smaller bulkers of up to 4,000 dwt, while Longship has larger vessels in its fleet.
Longship was set up in 2009 and operates a fleet of 30 ships with an average of less than 14 years.
Some 60% of the fleet is owned by Longship and the rest is chartered.
The Dutch company last year had revenues of close to NOK 760m ($84.4m), while Wagle earned NOK 123m.
Norwegian roots
Sivertsen originates from Bergen, but has lived and worked from Groningen for the last 15 years.
He is a co-shareholder in Longship together with Michel Cigrang, a member of the shipowning family behind Belgian shipping company CldN Cobelfret. Sivertsen is also a shareholder in Dutch multipurpose operator Cargow.
Wagle has four employees and is led by chief executive Andre Borge.
It operates 10 general cargo vessels in a fleet of geared and gearless vessels from 2,000 dwt to 13,500 dwt.
The company fixes third-party tonnage on long term contract and handles some 2.5m to 3m metric tonnes of dry cargo commodities per year.
The parties does not want to disclose how much Longship is paying for the stake in Wagle.
But they have initiated several projects for the further renewal and expansion of their fleet.
Their goal is to ensure sustainable growth with a fleet that will continue to be "future proof".
"The new setup adds to our overall fleet capacity and grants Longship geographic presence to treat and manage shipments for both our customers," said Borge.
"It is a desired step for us, given our successful ventures during last years and the mutual industrial mindset."
Origins
Wagle Chartering was established in Oslo in 2003 as a subsidiary of Ralf Wagle AS, a company formed in 1936.
Longship moves 5m metric tonnes of mainly bulk commodities per annum, with a strong focus on biomass fuels and agricultural products
The company is strong in the sector for 6,000-dwt vessels and operates with a team of 20 employees.
"Our acquisition of Wagle Chartering complements our overall service offering as industrial carrier, as we can now provide a wider spectrum of sizes to the shortsea trade," said Sivertsen.
"Industrial shipping is deeply embedded in the core of both companies and this investment therefore constitutes a perfect match."
