AD Ports Group is to acquire five bulk carriers and three crude oil tankers in bid to expand its fleet in a big way.
These vessel acquisitions are in line with the Group’s strategic global expansion objectives to enhance its shipping division.
The five bulk carriers, to be purchased for AED 459 million, are to be deployed for moving cargoes in the group’s long-term agreement with Saif Powertec.
The agreement, signed in April 2022, is for the movement of general cargo and dry bulk cargo between Fujairah Port in the UAE and Bangladesh, the Indian subcontinent, South-East Asia, and other global destinations.
The purchase of three crude oil tankers, with a total transaction value of AED 496 million, will form part of the seven-year vessel pooling agreement formed in December 2022 with KazMorTransFlot (KMTF), a subsidiary of Kazakh National Oil Company (KazMunayGas) for the transport of crude oil internationally.
Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, said that the extension of the fleet with the purchase of the new vessels will further equip its maritime cluster business with the right assets and logistics capabilities to adapt to the evolving global demand within the industries.
“More importantly, the vessel acquisitions are part of a larger expansion strategy by our Group aimed at broadening our portfolio of services and taking our experience and service excellence to the wider bulk shipping and offshore oil markets,” he said.
Under the terms of the strategic partnership agreement between KazMunayGas and AD Ports Group, the two companies will review opportunities to collaborate on a broad range of projects, including the development of a new fleet of shallow-water vessels to support offshore operations in the Caspian Sea and the development of a tanker fleet to support the export of Kazakh oil.
Under the terms of the agreement between Saif Powertec Limited and AD Ports Group’s feeder service, SAFEEN Feeders, the two companies will work closely together to facilitate global trade and cargo services over a period of 15 years.
The continuation of each agreement solidifies AD Ports Group’s collaborative ventures across the Central and South Asian region supporting international trade and enhancing connectivity, providing a solid foundation for growth in some of the most important markets.
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