Abu Dhabi expands investments in container and dry bulk shipping

Posted by Sep 27, 2022 4:48 PM

maritime executive

Abu Dhabi is continuing its efforts to expand its investment in the shipping industry through its AD Ports, with a focus on leveraging its trade and logistics operations. In two separate agreements through its Safeen Feeders launch in 2020, AD Ports announced new investments in container and dry bulk shipping.

One of the agreements calls for the formation of a new dry bulk shipping company. Safeen will partner with Invictus Investment to invest approximately $126 million in the purchase of five bulk carriers through special purpose vehicles, with Safeen Feeders owning 85% and Invictus owning 15%. The five ships will vary in size and are expected to be deployed within six months starting in September 2022, the companies said.

The operations of the ships will be carried out in a new company, which will be 51% owned by Safeen and the rest by Invictus. The joint venture will act as the carrier for Invictus’ dry bulk trading business, which they report currently transports more than 3 million tonnes of commodities per year, mainly wheat and grains. The bulk of the vessel’s capacity will be used to support this business, and Invictus will operate the vessels.

Growth plans call for additional vessels and expansion of commercial bulk shipping services to other companies globally / The initial focus will be on the Red Sea and Pacific corridors, the Indian subcontinent, and the Black Sea region.

Meanwhile, Safeen Feeder also plans to invest US$100 million to buy three container ships that will be leased to Bangladesh-based Saif Powertec. It will mark the Bangladeshi company’s entry into the container shipping business and will be used to establish a dedicated Bangladeshi container route. According to Safeen, transactions with Bangladesh have grown significantly and there is also a huge gap in the market between the UAE and Bangladesh.

The plan calls for these vessels to have a capacity between 1,700 and 2,100 TEU. They will be owned by Safeen and will operate under Saif Powertec’s 15-year lease. The operation is expected to begin in November 2022 and be deployed on global routes linking Bangladesh.

This marks the second agreement between Safeen and Saif Powertec. In April, the two companies signed a long-term trade facilitation and shipping agreement.Under the 15-year agreement, Safeen Feeders will supply eight Supramax bulk carriers with a capacity of 55,000 dwt to facilitate trade and freight services from Fujairah to Bangladesh

The agreements are the latest in a series of Abu Dhabi investments in shipping and diversifying the country’s assets. Launched in 2020, Safeen Feeders has significantly expanded its fleet over the past two years, deploying new vessels of different sizes and capacities for bulk and container services. The company reports a fleet of 16 feeder vessels and another four for transshipment, as well as a separate fleet for its offshore and tugboat operations. The company’s total production capacity is 23,400 TEU.

AD Ports Group reports that it looks to expand its diversified portfolio of international dry bulk services. As part of Abu Dhabi’s overall investment strategy, the group focuses on investing in fixed assets to strengthen our logistics capabilities.