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Safeen Feeders of AD Ports Group has signed a major agreement with Invictus Investment to launch a new international dry bulk shipping service.
Under the terms of the agreement, the two companies will purchase the vessels through purpose-built vehicles, with Safeen Feeders owning 85% and Invictus Investment owning 15%.
Additionally, Safeen Feeders and Invictus Investment will form a joint venture to operate the service. Safeen Feeders and Invictus Investment will own 51% and 49% of the joint venture, respectively.
The two companies are expected to initially commit about 463 million dirhams ($126 million) to invest in the vessels. From September 2022, five ships of various sizes are expected to be deployed over a six-month period, with additional ships as part of future growth plans.
The joint venture will serve as the carrier for Invictus’ dry bulk trading business, which currently transports more than 3 million tonnes of commodities per year, primarily wheat and ancillary grains. Most of the vessel’s capacity will be used to support this business.
In addition, the joint venture will expand its commercial bulk shipping services to other companies around the world, with an initial focus on the Red Sea and Pacific corridors, the Indian subcontinent, and the Black Sea region, with shipping capabilities to anywhere in the world within the scope of international voyages.
Under the joint venture agreement, Invictus Investment will commercialize the vessels and add to the program Invictus’ existing substantial trading volume, which is expected to generate substantial returns.
Listed on the Abu Dhabi Stock Exchange (ADX) under the symbol INVICTUS in June 2022, Invictus leverages its core competencies in wheat trading to diversify into complementary grains, as well as cotton, peanuts, meat, other commodities and finished goods. Launched in 2020, SAFEEN Feeders has significantly expanded its fleet over the past two years, deploying new vessels of different sizes and capacities to provide bulk and container services, increasing its total capacity to 23,400 TEU.
Capt Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, said: “Under the guidance of our wise leadership, AD Ports Group continues to invest in new initiatives to stimulate economic diversification and support the recovery of international trade.
“This is an important agreement for AD Ports Group as we look to expand our diversified portfolio of international dry bulk services to our customers and enhance food security in the region and around the world. Combining SAFEEN Feeders shipping expertise with Invictus’ Diversified procurement combined with the network will help create a significant new operator with a global reach and modern fleet.”
Amir Abdellatif, CEO of Invictus Investment Company, said: “Invictus Investment has rapidly grown into a transcontinental business to support the trade of a wide range of commodities, agricultural products and manufactured goods.
“This agreement with AD Ports Group ensures our commitment to investing in businesses that add synergies and value to our expanding trading business and builds a strong strategic partnership. It further aligns with our focus on investing in fixed assets to Consistent with enhancing our logistics capabilities. This will allow us to not only improve our operational efficiency, but will also support our joint growth as a joint venture partner into a new international shipping service.” –arab trade news agency
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