AD Ports already owns Safeen Feeders and Transmar
AD Ports Group has signed an AED2.9bn (US$800m) agreement to acquire an 80% equity stake in Dubai-based Global Feeder Shipping (GFS), creating the largest independent feeder carrier in terms of vessels owned.
Aligning GFS services with AD Ports Group companies Safeen Feeders and Transmar will give the Abu Dhabi-based company a total of 35 vessels.
It will be the third largest feeder carrier globally by volumes carried with a total container capacity of 100,000 teu.
GFS has 26 owned and operated vessels with a total capacity of 72,500 teu, covering the Middle East, Indian Subcontinent and Southeast Asia with services connecting the UAE to India, Pakistan, Sri Lanka, Egypt, Sudan, Djibouti, Yemen, Kingdom of Saudi Arabia, Bahrain, China, South Korea, and Vietnam.
Falah Mohammed Al Ahbabi, Chairman of AD Ports Group, said: “Our acquisition of a majority stake in GFS, which is the largest external investment in our company’s history, will deliver a step-change in the range of services we can offer and significantly enhance our global connectivity.
“Our ambition is to become one of the world’s leading shipping companies, offering the most comprehensive range of maritime services, and this investment moves us significantly closer to achieving that goal.”
AD Ports will look to integrate GFS into its maritime cluster, which already offers shipping, offshore and subsea services.
According to the company, the acquisition will boost its trade activities and connectivity to core markets, as well as enhancing its feedering business, providing economies of scale through an expanded route network and fleet.
In addition, it hopes that the deal will boost its hub and spoke model by linking core markets in the Gulf, Indian Subcontinent, Red Sea, and Turkey to port assets including Khalifa Port.
In particular, GFS’ integration with Safeen Feeders’ services has the potential to generate significant operational synergies.
Captain Mohamed Juma Al Shamisi, managing director and Group CEO, AD Ports Group, said: “Integrating GFS into our operations will enable us to increase our customer base, broaden our global footprint and build upon this significant momentum.”
Subject to regulatory approvals, the transaction is expected to close in Q1 2023. GFS’s existing management will remain in place with the founders retaining a 20% stake in the company.
