Addition marks ‘another strategic step in our vision to build a global presence’, enabling the DP World subsidiary to offer feedering and regional shortsea connectivity in Europe, the Mediterranean, North Africa, Asia, the Middle East, and the Indian Subcontinent.
DP World has announced that its European feeder network and shortsea business Unifeeder has acquired a 77% stake in the Feedertech Group, a Singapore-based feeder and shortsea operator, with Feedertech’s chairman Ali Maghami retaining the remaining 23% shareholding.
Established in 2003, Feedertech Group operates two companies: Feedertech, which is a feedering service, and Perma, a regional shortsea network. Both operate in the same market and connect the fast-growing trade route of Asia-Middle East via the Indian subcontinent. The group generates annual revenue of close to US$200 million from a diversified customer mix, calls at 50 ports and transports over 600,000 TEU annually.
Through the addition of Feedertech and Perma, DP World said Unifeeder “will now have the capability to offer feedering and regional shortsea connectivity in Europe, the Mediterranean, North Africa, Asia, the Middle East, and the Indian Subcontinent. Moreover, the expansion will increase Unifeeder’s logistics capabilities and facilitate integrated services that engage end customers and traders in line with the strategic ambition of the company’s parent, the DP World Group.
“It also enables opportunities in the fast-growing coastal shortsea trade on the Indian Subcontinent, complementing the existing India logistics strategy of DP World.”
Jesper Kristensen, CEO of Unifeeder, commented: ‘‘This is yet another strategic step in our vision to build a global presence, offer a broader network of solutions to customers, and leverage the way we engage with them to create the most comprehensive and integrated solutions across multiple geographies. We are excited to be joining forces with a company that operates on the same values as us. Feedertech’s asset-light business model and approach to preserve the common-user independent platform that focuses on flexibility, reliability and providing sustainable logistic solutions, made it a clear fit for Unifeeder.’’
Feedertech chairman Ali Maghami commented: “The Feedertech Group has enjoyed great success over the years and we are proud of our achievements. We believe the transaction with Unifeeder, and the support of DP World, will allow us to take the business to the next stage of its growth.
“Both Feedertech and Unifeeder share similar business models and a desire to reduce inefficiencies, and by combining the expertise of the two entities, we believe we can deliver a high-quality product for our customers. Furthermore, being part of the DP World family, will allow us to benefit from their deep relationship with end customers and wide global network.”
The deal is expected to close by the end of this year.
Unifeeder is an integrated logistics company with the largest feeder network and rapidly growing shortsea business in Europe, Northern Africa, and the Black Sea region, with connectivity to well above 100 ports. It was bought in 2018 by DP World for around US$765 million to supports the port operator’s ambition to extend its role into the global supply chain as a “trade enabler”, and to provide better connectivity in a world where the number of ultra-large containerships is growing fast.
Source: Lloyd’s
