DP World unit ac­quires 77% stake in Feed­ertech

The National - News - - BUSINESS - FA­REED RAH­MAN

DP World-owned Unifeeder bought a 77 per cent stake in Feed­ertech Group of Sin­ga­pore to boost its ca­pa­bil­ity in the lo­gis­tics sec­tor.

The Dubai port op­er­a­tor did not re­veal the to­tal value of the trans­ac­tion but said it is less than 1 per cent of its net as­set value. The deal is ex­pected to close in the first quar­ter of 2020.

“Feed­ertech has a strong rep­u­ta­tion as a re­li­able in­de­pen­dent feeder and re­gional short-sea op­er­a­tor and we are de­lighted to add this as­set to our port­fo­lio,” said Sul­tan bin Su­layem, group chair­man and chief ex­ec­u­tive of DP World.

“Fur­ther­more, it of­fers us ex­po­sure to the faster-grow­ing coastal short-sea trade in the In­dian sub­con­ti­nent, which is highly com­ple­men­tary to our ex­ist­ing In­dia lo­gis­tics strat­egy.”

The “next and im­mi­nent stage” of this strat­egy will be to launch a ded­i­cated and ef­fi­cient In­dia-Gulf re­gion ser­vice, Mr bin Su­layem said.

Es­tab­lished in 2003, Feed­ertech op­er­ates two busi­nesses. Feed­ertech is a com­pany of­fer­ing a feed­er­ing ser­vice – ves­sels which move con­tain­ers from smaller ports to larger con­tainer ter­mi­nals. Its other busi­ness Perma, mean­while, op­er­ates short-sea net­works. The group gen­er­ates an­nual rev­enue of more than $100 mil­lion (Dh367.2m) and trans­ports in ex­cess of 600,000 TEU (twenty foot equiv­a­lent units) per year.

“Feed­ertech has en­joyed great suc­cess over the years and we are proud of our achieve­ments, but we be­lieve the trans­ac­tion with Unifeeder, with the sup­port of DP World, will al­low us to take the busi­ness to the next stage of its growth,” said Ali Maghami, founder and owner of Feed­ertech, who will re­tain a 23 per cent stake.

The Unifeeder Group, which is 100 per cent owned by DP World, is an in­te­grated lo­gis­tics com­pany with the largest feeder net­work in the world, and a rapidly grow­ing short-sea busi­ness in Europe, northern Africa and the Black Sea re­gion.

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