China Navigation to buy Hamburg Süd’s bulk shipping business

22 January 2019 (Last Updated January 22nd, 2019 09:59)

Singapore-based China Navigation Company (CNCo) has signed an agreement to purchase Hamburg Süd’s bulk shipping business for an undisclosed sum.

China Navigation to buy Hamburg Süd’s bulk shipping business
Hamburg Süd’sbulk shipping business operates a chartered fleet of around 45 vessels. Credit: Hamburg Süd.

Singapore-based China Navigation Company (CNCo) has signed an agreement to purchase Hamburg Süd’s bulk shipping business for an undisclosed sum.

Hamburg Süd’s bulk shipping business includes Rudolf A Oetker (RAO), Furness Withy Chartering and Aliança Navegação e Logística’s (Aliabulk) bulk activities.

With operations in Hamburg in Germany, London in the UK, Melbourne in Australia, and Rio de Janeiro in Brazil, Hamburg Süd’s bulk shipping business currently operates a chartered fleet of approximately 45 vessels.

Hamburg Süd’s bulk shipping fleet includes Handysize, Supra / Ultramax, and Kamsarmax / Panamax types of vessels that are involved in the transportation of dry goods, including agricultural raw materials, ore and steel.

Hamburg Süd CEO Dr Arnt Vespermann said: “With this step, Hamburg Süd is focusing as planned on its liner business with its two container shipping brands, Hamburg Süd and Aliança.

“As part of Maersk, the world’s largest liner shipping company, this clear focus is a logical step.”

“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.”

The newly reached deal is subject to regulatory approval and is scheduled to be closed by the end of the first quarter of this year.

The deal excludes the RAO Tankers business unit, which will continue to operate under the Hamburg Süd Group.

China Navigation Company managing director James Woodrow said: “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 into the Supra / Ultramax segment.

“We share a strong corporate culture with a rich history spanning close to 150 years between Hamburg Süd (1871), The China Navigation Company (1872) and Furness Withy (1891) that demonstrates a shared vision and long-term commitment to the maritime industry.“

CNCo, a wholly owned deepsea ship owning and operating division of Swire Group, currently owns and operates a fleet of more than 135 vessels.