Egyptian logistics player Transmar has returned to shipowning with a deal for a former Lomar container ship.

Domestic financier EFG Hermes Corp-Solutions said it had provided $25m for the company to buy the 2,100-teu feeder vessel Transmar Legacy (built 2008).

The former Louisiana Trader was reported sold to Dina Shipping and Trading of Egypt by Lomar Shipping in December for an undisclosed price.

VesselsValue assesses the ship as worth $45.6m.

The deal is expected to drive sizeable growth for Transmar, Egypt’s only container shipping company, according to EFG Hermes.

Transmar is a wholly-owned subsidiary of IACC Holdings.

The ship will bolster the company’s Red Sea service, primarily connecting Egypt and Saudi Arabia.

The total leasing finance package was worth $33m.

“Transmar has also made sizeable investments towards the acquisition of new shipping containers, promoting new market entries and boosting expansion in this sector,” EFG Hermes said.

Talal Elayat, the financier’s chief executive, added: “We are proud to enter into this partnership with Transmar for the first of many vessel financing plans currently in our pipeline.”

Maritime milestone for EFG Hermes

The boss said the transaction is in line with its strategy to diversify the portfolio and create value across multiple industries.

“As one of the leading leasing and factoring companies in Egypt, this agreement marks another milestone for EFG Hermes Corp-Solutions, as we enter the maritime industry and support the enhancement of the supply chain industry at large,” Elayat added.

The deal involved collaboration with law firms, insurers and banks.

EFG Hermes Corp-Solutions was established in 2020 to consolidate the EFG Hermes group’s leasing and factoring businesses.

Mohamed El Ahwal, CEO of IACC Holdings said: “We take pride in being an agile organisation that quickly responds to the swift changes defining the current global shipping and logistics industry.”

He added: “We are proud to resume our shipowning business model — after a 10-year hiatus — and believe this investment marks a new chapter of growth, not only for Transmar but also for the regional shipping industry as a whole.”

Lack of tonnage in Middle East

In the Middle East, a shortage of freight space and manpower, compounded by a rapid recovery in consumer demand, has led to a shortage of carriers and continues to hamper a steady flow of delivery, Transmar believes.

El Ahwal, who is also managing director of Transmar, said the finance deal reflects a commitment to expand in the shipping industry.

“As Egypt’s only container shipping line, it is only fitting that we should partner with Egypt’s universal bank and the leading investment banking franchise … EFG Hermes Holding, to acquire Transmar Legacy,” he added.

IACC Holdings is a privately owned investment company with a focus on shipping and logistics.

It can trace its origins back to 1979 when industry pioneer Mostafa El Ahwal founded International Associated Cargo Carrier (IACC).

TradeWinds reported last week that Lomar Shipping is raking in a profit of more than $40m on the sale of a sub-panamax container ship purchased less than 18 months ago.

The UK-based owner is selling the 2,872-teu Windswept (built 2010) for around $52m to China-backed logistics newcomer Transfar Shipping, according to market sources.

The deal will net a chunky profit for Lomar, which bought the vessel in October 2020 for close to $10m.