Marine Har­vest in shipping joint ven­ture

Fish Farmer - - European News - Above:

MARINE Har­vest and Deep Sea Sup­ply have es­tab­lished a shipping joint ven­ture to build, own and op­er­ate aqua­cul­ture ves­sels.

The two com­pa­nies be­lieve that through the fifty-fifty owned joint ven­ture there is sig­nif­i­cant room for ef­fi­ciency im­prove­ments in the mar­ket, rang­ing from re­duc­tion in new­build­ing costs to more cost-ef­fi­cient op­er­a­tions.

Marine Har­vest char­ters 44 ves­sels with a com­bined cost of ap­prox­i­mately EUR 100 mil­lion per year, more than any other com­pany in the in­dus­try.

The joint ven­ture ex­pects to en­ter into con­tracts for the con­struc­tion of aqua­cul­ture ves­sels which will be char­tered by Marine Har­vest upon de­liv­ery.

Cur­rent dis­cus­sions in­di­cate a sub­stan­tial re­duc­tion in new­build­ing cost com­pared to Ef­fi­ciency im­prove­ments

so­lu­tions pro­vided by al­ter­na­tive aqua­cul­ture providers.

The new group will be Marine Har­vest’s pre­ferred provider of aqua­cul­ture ves­sels. The in­ten­tion is to also com­pete for ex­ter­nal con­tracts.

Nor­we­gian shipping mag­nate John Fredrik­sen is a ma­jor share­holder in Marine Har­vest and in Deep Sea Sup­ply, which has been af­fected re­cently

by the slump in the oil sec­tor. Deep Sea Sup­ply is a lead­ing owner and op­er­a­tor of sup­ply ves­sels.

It will cover all nec­es­sary man­age­ment ser­vices for the joint ven­ture, in­clud­ing tech­ni­cal man­age­ment, ship man­age­ment and other cor­po­rate ser­vices.

The aqua­cul­ture shipping in­dus­try is frag­mented and char­ac­terised by lack of com­pe­ti­tion. Un­der the new deal, Marine Har­vest and Deep Sea Sup­ply aim to con­sol­i­date the in­dus­try to achieve economies of scale.

This could in­clude tak­ing ad­van­tage of the cur­rent im­bal­ance in the off­shore ser­vice ves­sel mar­ket by con­vert­ing sur­plus off­shore ves­sels into aqua­cul­ture ves­sels if pro­ject eco­nom­ics are favourable.

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