Deep Sea Supply to venture into aquaculture vessel market

The two companies have signed heads of agreement to establish a 50 – 50 joint venture to build, own and operate aquaculture vessels.

Through the joint venture the two companies will seek improvements in the efficiency of operating aquaculture vessels. Marine Harvest currently charters 44 aquaculture vessels at a cost of roughly EUR100m per year, and the joint venture will become its provider of vessels.

The joint venture also plans to compete for external contracts.

“The aquaculture shipping industry is fragmented and characterised by lack of competition. Through the jv, Deep Sea Supply and Marine Harvest aim to consolidate the industry to achieve economies of scale,” Deep Sea Supply said.

Conversion OSVs from the oversupplied offshore marine market is one option.

“The JV will explore any opportunity that may improve building cost or operating cost, including taking advantage of the current imbalance in the offshore service vessel market through potentially convert surplus offshore vessels into aquaculture vessels if project economics are favourable,” the company said.

Deep Sea Supply said its largest shareholder, John Fredriksen’s Hemen Holding, had indicated its support for the new venture.