Tuesday, December 3, 2019

Acquisition Means New Container Feeder and Short Sea Cargo Services Open Up

Extended Global Stretch for Specialist Outfit
Shipping News Feature

DENMARK – SINGAPORE – It seems since its acquisition by DP World in August last year Aarhus headquartered short sea cargo and container feeder specialist Unifeeder has not allowed the grass to grow under its feet. With a plethora of new services, including some emanating from its parent company's port terminals, the company has now itself acquired a 77% stake in The Feedertech Group, a Singapore based feeder and short sea operator.

Established in 2003, the group operates two companies: Feedertech, which is a feedering service, and Perma, a regional short sea network. Both operate in the same market and connect the fast-growing trade route of Asia-Middle East (home territory for DP World) via the Indian Subcontinent.

The group generates annual revenue of close to $200 million from a diversified customer mix, calls at 50 ports and transports over 600,000 TEU annually. The group chairman, Ali Maghami, who will retain the remaining 23% shareholding in Feedertech, 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 a wide global network. We look forward to a prosperous future together.”

The deal, which is expected to close before the end of the year, means that through Feedertech and Perma, Unifeeder will now have the capability to offer feedering and regional short sea connectivity in Europe, the Mediterranean, North Africa, Asia, the Middle East, and the Indian Subcontinent. Moreover, the pair say 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.

The deal is intended to also take advantage of opportunities in the fast-growing coastal short sea trade on the Indian Subcontinent, again complementing the existing India logistics strategy of DP World, and Jesper Kristensen, CEO of Unifeeder, observed:

‘‘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 logistics solutions, made it a clear fit for Unifeeder.”