SAFEEN Feeders, Saif Powertec sign charter deal for three boxships

AD Ports Group’s shipping company, SAFEEN Feeders has signed a charter agreement with Saif Powertec for the purchase and chartering of three container ships.

According to the deal, SAFEEN Feeders will charter an initial three vessels to Saif Powertec at pre-agreed rates for a duration of 15 years, starting in November 2022 to be deployed on global routes connecting Bangladesh.

SAFEEN Feeders announced it will invest approximately US$102 million to purchase the container vessels.

“Leveraging SAFEEN Feeders’ expertise as a leading maritime service provider, this container ship charter agreement with Saif Powertec will help meet surging container traffic demand along Bangladesh-bound routes. We have structured the agreement to reduce exposure to market volatility and ensure a positive return on our investment in these vessels,” commented Captain Ammar Mubarak Al Shaiba, acting CEO of the maritime cluster and SAFEEN Group, AD Ports Group.

Tarafder MD Ruhul Amin, managing director of Saif Powertec, noted this new charter deal is expected to boost container shipping services of the company. “Bangladesh has been underserved by direct services and this new agreement will enable us to fill a substantial gap in the market and drive UAE-Bangladesh trade,” he added.

Tarafder MD Ruhul Amin pointed out that “the intention is to charter three vessels at the outset, offering 1,700–2,100 TEU capacity each, which will enable Saif Powertec to realise significant returns on this route and deliver real benefits for our customers.”

In April 2022, SAFEEN Feeders inked another long-term trade facilitation and shipping agreement with Saif Powertec Limited to facilitate trade and cargo services from Fujairah, UAE to Bangladesh over a period of 15 years. As part of the collaboration, SAFEEN Feeders provides eight Supramax bulk carriers with 55,000 Deadweight Tonnage (DWT) capacity.

Furthermore, SAFEEN Feeders announced another major deal with Invictus Investment for the start of a new international dry bulk shipping service.

Under the terms of the agreement, the two companies will purchase ships through Special Purpose Vehicles, owned 85% by SAFEEN Feeders and 15% by Invictus Investment, while the two partners will form a joint venture to operate the service. The joint venture will be owned 51% by SAFEEN Feeders and 49% by Invictus Investment.

The two companies are expected to initially commit approximately US$126 million for the investment in the vessels and five ships of varying sizes are expected to be deployed within six months, starting in September 2022, while additional vessels may be deployed in the future.

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