SAFEEN Feeders Signs Long-Term Charter Agreement with Saif Powertec
AD Ports Group’s SAFEEN Feeders and Saif Powertec Limited have signed a charter agreement that will see SAFEEN Feeders purchase and charter out three containerships, to support expansion of the Bangladesh-based entity into the container shipping segment.
Under the terms of the agreement, 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 will invest approximately $102 million to purchase the vessels.
The long-term charter agreement with Saif Powertec will help them gain access to critical assets while providing stable returns on investments to AD Ports Group over a long-term horizon.
Captain Ammar Mubarak Al Shaiba, Acting CEO, SAFEEN Group said: “Under the guidance of our wise leadership, AD Ports Group continues to support the opening of new routes to stimulate global trade and drive new economic opportunities.
"Leveraging SAFEEN Feeders’ expertise as a leading maritime service provider, this containership 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.”
Tarafder MD Ruhul Amin, MD, Saif Powertec, said: “We are delighted to expand our ongoing partnership with AD Ports Group’s SAFEEN Feeders through this new charter agreement, which will enable us to expand our portfolio of container shipping services.
"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.
“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 signed another long-term trade facilitation and shipping agreement with Saif Powertec Limited to facilitate trade and cargo services from Fujairah to Bangladesh over a period of 15 years.
As part of the collaboration, SAFEEN Feeders is providing eight Supramax bulk carriers with 55,000 Deadweight Tonnage (DWT) capacity.