Safeen Feeders is to invest AED 375 million to purchase three containerships that will be operated by Saif Powertec
Abu Dhabi-based Safeen Feeders and Saif Powertec have signed a charter agreement that will see the shipping company purchase and charter out three containerships, for 15 years, to support further expansion of the Bangladeshi company in the container shipping segment.It is reported that Safeen will invest approximately AED 375 million (US$ 102 million) to purchase the vessels and has structured the agreement to reduce exposure to market volatility and ensure a positive return on its investment in these vessels.
Tarafder Ruhul Amin, Managing Director of Saif Powertec, said: “Bangladesh has been underserved by direct services and this new agreement will enable us to fill a substantial gap in the market and drive UAE-Bangladesh trade. The intention is to charter three vessels at the outset, offering 1,700–2,100 TEU capacity each, which will enable us to realise significant returns on this route and deliver real benefits for our customers.”
In April this year Safeen Feeders signed another long-term agreement with Saif Powertec to facilitate trade and cargo services from Fujairah to Bangladesh over a period of 15 years. As part of the collaboration, Safeen Feeders is providing eight 55,000 dwt Supramax bulk carriers to its Bangladeshi partner.
In another recent initiative, Safeen Feeders has signed an agreement with Invictus Investment to launch a new international dry bulk shipping service. The two companies will purchase ships through Special Purpose Vehicles, owned 85% by Safeen Feeders and 15% by Invictus Investment. In addition, Safeen Feeders and Invictus Investment will form a joint venture to operate the service, which will be owned 51% by Safeen Feeders and 49% by Invictus Investment.
The two companies are expected to initially commit approximately AED 463 million (US$126 million) for investment in the bulk carrier vessels. Five ships of varying sizes are expected to be deployed within the next six months, with additional vessels envisaged as part of future growth plans.
The joint venture will serve as the carrier for Invictus’ drybulk trading business, which currently ships more than three million tonnes of commodities annually, principally wheat and other grains. The majority of the ships’ capacity will be used to support this business. Under the joint venture agreement, Invictus Investment will commercially operate the vessels, and with its large existing trading volumes added to the program, it is expected to generate strong returns on the investment.
