DP World acquires Feedertech Group marine logistics provider
Feedertech generates a revenue of approximately $200m (AED734.5m), transporting more than 600k TEUs per year
Unifeeder, a fully-owned subsidiary of port operator DP World, has acquired a 77% stake in marine logistics provider – the Feedertech Group.
The deal, which is expected to close in Q1 2020, is part of DP World’s vision to build end-to-end logistics capabilities to serve the needs of shipping lines and cargo owners. The acquisition of Feedertech will expand the company’s feedering and short-sea product offering to multiple geographies.
Singapore-based Feedertech operates two businesses; Feedertech, which is an independent feedering service, and Perma, a regional shortsea network. Both operate in the same market and connect the fast-growing trade route of Asia to the Middle East via the Indian Subcontinent.
Feedertech calls at 50 ports, generating a combined revenue of approximately $200m (AED734.5m) by transporting more than 600k TEUs annually.
Through Feedertech and Perma, Unifeeder will have the capability to offer feedering and regional shortsea connectivity in Northern Europe, the Mediterranean, North Africa and now Asia and the Indian Subcontinent.
Commenting on the acquisition, group chairman and chief executive officer of DP World, Sultan Ahmed Bin Sulayem, said: “The acquisition of a stake in the Feedertech Group is another strategic step in our vision to build an end-to-end logistics capability and offer an integrated service suite that also engages end-customers and traders across the while optimising operations.”
He added: “Furthermore, it offers us exposure to the fast-growing coastal shortsea trade in the Indian Subcontinent, which is highly complementary to our existing India logistics strategy. The next and imminent stage of this development will be to launch a dedicated and efficient India-Gulf region service, which is an important route for our customers.”