The pair of companies will launch a new international dry bulk shipping service with the vessels. The ships will be owned by a series of Special Purpose Vehicles, owned 85% by SAFEEN Feeders and 15% by Invictus, while the joint venture to operate the vessels will be 51% owned by SAFEEN and 49% by Invictus.
For an initial capital commitment of AED463m ($126m), the partners will deploy five dry bulk vessels of varying sizes within six months of September 2022. Future growth plans include additional vessels, the companies said.
Invictus’ dry bulk trading business ships over three million tonnes of commodities annually; the new joint venture will primarily serve this business, which is focussed on grain trading, and is expected to generate strong returns. Invictus will commercially operate the vessels.
The joint venture will also offer its bulk shipping capabilities to external companies, initially focussing on the Red Sea and Pacific corridors, Indian subcontinent, and Black Sea region.
Invictus is listed on the Abu Dhabi Securities Exchange (ADX), and SAFEEN is owned by the AD Ports Group.
Capt. Mohamed Juma Al Shamisi, Managing Director 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.”
Amir Abdellatif, Chief Executive Officer 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.
Copyright © 2022. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited.