Nigeria’s BUA Foods has moved into ship owning after acquiring two bulkers to augment its sugar export operations in West Africa.
The first of the two ships, renamed Bundu, has recently been delivered. Financial details and the name of the seller were not disclosed.
The ship is believed to be the former 16,800-dwt geared bulker Stellar Toldeo (built 2003) and was acquired for $6.5m, according to VesselsValue.
BUA Foods said the vessel’s cargo capacity is suited to enable “quick and sustainable delivery” of more refined sugar in the face of growing demand from across Africa.
The Lagos-based company runs a terminal and sugar refinery with a capacity of 750,000 metric tons out of Port Harcourt.
“Owning a vessel to export sugar is a crucial enabler of flexibility and agility in our total supply chain as it allows our customers to tackle time-critical fulfilment challenges due to timely availability of their goods,” said a BUA Foods spokesperson.
“As we expand our customer base into the region, we strongly believe in working closely with them towards meeting and surpassing their needs in time and in full.”
BUA Foods said a second bulker is expected to be delivered to the company by the end of the second quarter of 2022.
“As we drive our business for growth with a focus on sustainable returns … owning a shipping vessel is an important step in BUA Foods strategy,” said BUA Foods chairman Abdul Samad Rabiu.
“We see an increased and continued demand for refined sugar across the region with attendant increase for logistics support to aid timely delivery, which is why it is important for us to strengthen our current capability with our own controlled asset as we advance further in our business strategy.
“These new vessels will create operational efficiencies in our business and open possibilities for new services,” he added.
BUA Foods added that with these acquisitions, it was “well-positioned” to take advantage of the African Continental Free Trade Area, which is designed to provide a comprehensive and mutually beneficial trade agreement among the member states.
