China Navigation to acquire the bulk shipping activities of Hamburg Süd
Hamburg Süd and The China Navigation Company (CNCo) have reached an agreement for CNCo to acquire RAO, Furness Withy Chartering and the bulk activities in Alianca Navegacão
Hamburg, January 21, 2019. Hamburg Süd and The China Navigation Company (CNCo), a subsidiary of the Swire Group, today announced an agreement for CNCo to acquire the bulk shipping business in Hamburg Süd which includes Rudolf A. Oetker (RAO), Furness Withy Chartering and the bulk activities in Alianca Navegacão (Aliabulk).
The bulk shipping business in Hamburg Süd operates from Hamburg, London, Melbourne and Rio de Janeiro with a chartered fleet of approximately 45 vessels in the segments: Handysize, Supra/Ultramax and Kamsarmax/Panamax. Whereas liner shipping activities in Hamburg Süd involves transporting cargo in containers, bulk shipping involves flexibly transporting dry goods – such as agricultural raw materials, ore and steel – in bulk carriers from port to port worldwide, depending on the customer’s requirements.
“With this step, Hamburg Süd is focusing as planned on its liner business with its two container shipping brands, Hamburg Süd and Aliança,” says Dr. Arnt Vespermann, CEO of Hamburg Süd. “As part of Maersk, the world’s largest liner shipping company, this clear focus is a logical step. At the same time, CNCo, is an established and well-respected company in bulk shipping that is on a growth course in this segment and therefore constitutes a good new home for RAO, Furness Withy and Aliança Bulk.”
CNCo, headquartered in Singapore, is the wholly owned deep-sea ship owning and operating division of the multinational Swire Group. The company today employs around 2,500 employees globally and owns and operates about 135 vessels consisting mainly of dry bulk carriers and multipurpose liner vessels. Swire Bulk, its dry bulk trading business, was established in 2012 and trades a modern fuel-efficient fleet of over 100 Handysize and Supra/Ultramax vessels comprised of owned, long term and short term-chartered tonnage. The business is focused on being a leading provider of sustainable and innovative shipping services and being partner of choice to its’ long-term charterers and industrial customers.
“CNCo is excited to have successfully signed this acquisition” commented James Woodrow, Managing Director of The China Navigation Company. “There are some very natural synergies between the businesses and we are delighted to acquire such an experienced and high-quality team and business that complements our own modern eco fleet and helps to develop our strategic expansion in to the Supra/Ultramax segment. We share a strong corporate culture with a rich history spanning close to 150 years between Hamburg Sud (1871), The China Navigation Company (1872) and Furness Withy (1891) that demonstrates a shared vision and long-term commitment to the Maritime Industry.“
Closing of the agreement is expected by the end of the first quarter of 2019, subject to regulatory approval. The parties have agreed not to disclose the sales price. The RAO Tankers business unit is not included in the sale and will remain part of the Hamburg Süd Group.