AD Ports’ Safeen Feeders, Invictus Investment to form JV, launch dry bulk shipping service

AD Ports Group’s Safeen Feeders and Invictus Investment have inked an agreement to launch a new international dry bulk shipping service.

The companies will buy ships through special purpose vehicles, owned 85 per cent by Safeen Feeders and 15 per cent by Invictus Investment.

In addition, Safeen Feeders and Invictus Investment will form a joint venture to operate the service. The joint venture will be owned 51 per cent by Safeen Feeders and 49 per cent by Invictus Investment.

The two companies are expected to initially commit approximately Dhs463m for the investment in the vessels. Five ships of varying sizes are expected to be deployed within six months, starting in September, with additional vessels envisaged as part of future growth plans.

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.

In addition, 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.

Under the joint venture agreement, Invictus Investment will commercially operate the vessels, and with Invictus’ large existing trading volumes added to the programme, it is expected to generate strong returns on the investment.

Invictus, which was listed on the Abu Dhabi Securities Exchange in June, has leveraged its core competency in wheat trading to diversify into complementary grains, as well as cotton, groundnuts, meat, other commodities and finished goods. Safeen Feeders, which launched in 2020, has significantly expanded its fleet over the past two years, deploying new vessels of varying sizes and capacities for bulk and container services, boosting overall capacity to 23,400 TEUs.

Captain Mohamed Juma Al Shamisi, MD and group CEO, AD Ports Group, said: “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.”

Amir Abdellatif, CEO of Invictus Investment Company, said: “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.”

In other news, Safeen Feeders said it will collaborate with CMA CGM Group to launch a new Southeast Asia service linking Singapore, Colombo and Chennai.

Read: AD Port Group’s Safeen Feeders to launch new service for Southeast Asia