Saif Powertec, Safeen Feeders to run shipping service from abroad

SaifPowertec Limited, a listed firm active in ports, logistics, civil engineering, and power sectors, has signed a long-term trade facilitation and shipping agreement with Safeen Feeders, a concern of UAE-based AD Ports Group.

With this agreement, SaifPowertec Ltd becomes the first Bangladeshi company to operate in the shipping and logistics sector abroad.

On 15 April, AD Ports Group announced the agreement on their website. 

Under the terms of the agreement, the two companies will work closely to facilitate trade and cargo services from UAE's Fujairah Port to Bangladeshi ports over a period of 15 years. 

Tarafder Md Ruhul Amin, managing director of SaifPowertec, said in a press release, "We are pleased to announce the start of our close partnership with AD Ports Group's Safeen Feeders, which has greatly enhanced our capabilities as Bangladesh's sole terminal operator to facilitate the movement of dry cargo at the international level."

"Boasting a capacity of 55,000 DWT, Safeen Feeders' bulk carriers, which will be offered on a bareboat or time charter basis, are expected to realise significant returns and deliver real benefits for our customers," he said.

Captain Maktoum Al Houqani, chief executive officer of Maritime Cluster at AD Ports Group, said, "Our newest collaboration with SaifPowertec not only introduces a new offering for customers that is a fast and low-cost service for their dry bulk shipping needs, but will also have a tremendous impact on maritime trade across our combined spheres of influence.

"Leveraging Safeen Feeders' expertise as a leading maritime service provider, as well as the advanced capabilities of its modernised fleet, Saif is well-positioned to accelerate the trade of dry construction materials between the UAE and Bangladesh, along with other dry cargo goods to key markets across the region and beyond," he added.

As part of the collaboration, Safeen Feeders is expected to provide eight Supramax bulk carriers with 55,000 Deadweight Tonnage (DWT) capacity to SaifPowertec, AD Ports Group said in their announcement.

The group further added that in addition to facilitating the movement of general cargo and dry bulk cargo between Fujairah Port to ports in Chattogram and Mongla in Bangladesh, the new bulk shipping offering will also oversee cargo operations to the Indian subcontinent, South-East Asia, and other global destinations.

This arrangement will allow for easier and low-cost shipment of goods from the UAE, company authorities said.

For this, SaifPowertec has launched a subsidiary company, Saif United Shipping & Trading, in the UAE.

A senior officer of SaifPowertec, requesting anonymity, said the company will charter eight ocean-going vessels from Safeen Feeder to transport goods. The vessels will be operated by Saif United Shipping.

The vessels are each expected to fetch an income of Tk154 crore for SaifPowertec, registering a profit of Tk15.48 crore.

Safeen Feeder is a UAE-based container feeder service company launched in 2020 by AD Ports Group, with a focus on the container distribution network in the Arabian Gulf and Indian subcontinent.

Captain Ammar Mubarak Al Shaiba, CEO of Safeen Feeders and acting CEO of Ports Operating Company at AD Ports Group, said, "Today's announcement marks not only the official start of a new collaboration between AD Ports Group and one of Bangladesh's leading logistics service providers, but also heralds a new era of maritime trade facilitation between our two proud nations and their respective ports.

"In addition to boosting trade between the UAE and Bangladesh, the collaboration with SaifPowertec brings a new opportunity to deliver an enhanced cargo service to customers across the Indian subcontinent, South-East Asia, as well as other high-profile global destinations," he said.

Both companies will jointly own and operate bulk shipping services that will promote maritime trade between the Mena (Middle East and Northern Africa) region and Asian subcontinent. 

Other areas of potential collaboration involving SaifPowertec include the leasing of berths and potentially jetties to develop and improve the cargo operations, along with the adoption of warehouse storage solutions offered by AD Ports Group.

The scope of the agreement also covers future areas of collaboration to jointly develop and invest in the maritime infrastructure and projects of Bangladesh and the United Arab Emirates.

According to the Bangladesh Bank data, in the fiscal year 2020-21, the country imported goods worth $1.32 billion from the UAE, which was 83% higher than the previous year.

In the fiscal year 2020-21, goods worth $0.49 billion were exported from Bangladesh. In the first seven months of the current financial year, the value of exports already stands at $0.41 billion.

SaifPowertec is the country's lone terminal operator, handling around 58% of containers at the Chattogram Port. It also handles containers at Mongla and Pangoan ports.

The company is also involved in logistics and civil engineering, electrical equipment and automotive or car batteries.