A subsidiary of the Swire Group, The China Navigation Company (CNCo) and Hamburg Süd have together announced an agreement, according to which CNCo would acquire Hamburg Süd’s bulk shipping business. Apparently, the business includes bulk activities in Alianca Navegacão (Aliabulk), Furness Withy Chartering and Rudolf A. Oetker (RAO).
Hamburg Süd issued a news release which states that the closing of the agreement, which is subjected to regulatory approval, is anticipated by the end of 2019’s first quarter. The companies have agreed on not disclosing the sales price. The RAO Tankers business unit, which is not included in the sale, would remain as a part of Hamburg Süd for the time being.
Dr. Arnt Vespermann, Chief Executive Officer of Hamburg Süd, mentioned that the company is working on its plan and focusing on its liner business with Aliança and Hamburg Süd, its two container shipping brands. Being a part of the largest liner shipping firm Maersk, a clear focus is a logical step, he said.
CNCo is a well-respected and established company in bulk shipping, which is on its growth course in this segment. Therefore, the company constitutes a good new home for Aliança Bulk, Furness Withy and RAO, added Dr. Vespermann.
The China Navigation Company’s Managing Director, James Woodrow, said that CNCo has acquired a high-quality and experienced team and business, which complements its own modern eco fleet as well as assists in developing strategic expansion into the Supra/Ultramax segment.
Woodrow further stated that the companies share a strong corporate culture, along with a rich history that spans approximately 150 years between The China Navigation Company (1872), Hamburg Sud (1871) and Furness Withy (1891) which demonstrates a long-term commitment and a shared vision to the maritime industry.
For the record, Hamburg Süd’s bulk shipping business operates from Rio de Janeiro, Melbourne, London and Hamburg with a chartered fleet of about 45 vessels in the segments Kamsarmax/Panamax, Supra/Ultramax and Handysize.