AD Ports Group’s SAFEEN Feeders has signed a major agreement with Invictus Investment to launch a new international dry bulk shipping service.
Under the terms of the agreement, SAFEEN Feeders and Invictus Investment will form a joint venture to operate the service. The joint venture will be owned 51 percent by SAFEEN Feeders and 49 percent by Invictus Investment.
According to the statement, “The two companies will also purchase ships through Special Purpose Vehicles, owned 85 percent by SAFEEN Feeders and 15 percent by Invictus Investment.”
The two companies are expected to initially commit approximately $126 million (AED463 million) for the investment in the vessels. “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 company noted.
Capt. Mohamed Juma Al Shamsi MD & Group CEO AD Ports Group
“Under the guidance of our wise leadership, AD Ports Group continues to invest in new initiatives that stimulate economic diversification and support the recovery of international trade. 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.”
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. The majority of the ships’ capacity will be provided to support this business.
“The joint venture will also 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, and with the capacity to ship to anywhere in the world within international navigating limits,” the company added.
Mr. Amir Abdellatif, Chief Executive Officer of Invictus Investment Company, said that “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.”
