Unifeeder, a wholly-owned subsidiary of DP World, has announced the acquisition of a 77% stake in the Singapore-based Feedertech Group. The deal, which is expected to be concluded in the first quarter of 2020, is the latest stage in DP World’s strategic move to build up its end-to-end logistics capabilities, to serve the needs of shipping lines and cargo owners.
The acquisition will expand the company’s feedering and short-sea operations into new geographical areas. Feedertech operates two businesses: Feedertech, which is an independent feedering service, and Perma, a regional shortsea network. Both connect Asia to the Middle East trade routes via the Indian Subcontinent. Feedertech currently calls at around 50 ports, generating a combined revenue of around US $200 million from a broad customer base, and transports more than 600,000 teu a year.
Sultan Ahmed Bin Sulayem, group chairman and CEO, DP World, said: “Feedertech has a strong reputation as a reliable and independent feeder and regional shortsea operator and offers us exposure to the fast-growing coastal shortsea trade in the Indian Subcontinent. This is highly complementary to our existing India logistics strategy.” He added that there are advanced plans to launch a new, dedicated India-Gulf region service to meet the needs of its customers in the near future.
Ali Maghami, founder and chairman of Feedertech, said he believed that the transaction with Unifeeder and the support of DP World will allow the management team to take the business to the next stage. He added, “Both Feedertech and Unifeeder share similar business models and have a common desire to reduce inefficiencies. Being part of the DP World family will allow us to benefit from the group’s relationships with end customers and its wide global network.”