Limassol shipping firms in new procurement joint venture

Two of the island’s largest and oldest maritime companies Bernhard Schulte Shipmanagement (BSM) and Columbia Shipmanagement have combined their global buying power to create a joint venture to deliver greater value in ship supply costs for shipowners.

The new company, GP General Procurement Company Limited (GenPro), will negotiate framework supply agreements with international ship suppliers on behalf of its members’ clients to secure the lowest prices achievable on all consumables, said a company statement. This new agreement gives BSM and Columbia’s pool of more than 800 vessel owners access to a wider, superior range of consumables at the best prices available globally, it added.

It will capitalise on the best practices and strengths of its members by driving efficiencies into the whole procurement process to help reduce clients’ vessel OpEx costs and return real value to the client by way of volume-related discounts in a fully transparent and auditable way, said the statement.

The move guarantees principals lower costs in the procurement of a wide range of consumables while guaranteeing product quality and service.

Ian Beveridge, chief executive officer, BSM, said: “We are pleased to be working with Columbia Shipmanagement to set up GenPro, a new company designed to deliver maximum value to our shipowner clients in a new and innovative way.”

“We believe GenPro will change the way global procurement is delivered to shipowners on an international scale and will in time become a compelling new force in the industry. Both companies are leveraging their industry links and relationships to owners and we believe this is something owners will welcome,” Beveridge added.

Columbia Shipmanagement CEO and President Mark O’Neil said: “GenPro represents optimisation of the procurement process in its purest form – a veritable ‘winwin’ for owners and suppliers alike.” He said the scope and reach of the procurement effort will not be limited to maritime products and consumables but will include all products and consumables associated with the operation of the maritime business, onshore and offshore.

GenPro will derive its income from a brokerage fee agreed with, and paid to it, by the ship supplier. It will also negotiate and agree volume-related discounts with the suppliers which shall be returned to GenPro members’ clients in full.