Singapore-based The China Navigation Company has reached an agreement with Hamburg Süd to acquire its bulk shipping business, including Rudolf A. Oetker (RAO), Furness Withy Chartering and part of Alianca Navegacão (Aliabulk).
The business unit operates from Hamburg, London, Melbourne and Rio de Janeiro with a chartered fleet of approximately 45 vessels.
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.
“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.”
James Woodrow, managing director of The China Navigation Company, said there were some “very natural synergies between the businesses”.
“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,” he said.
“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.