The port group spends US$2 billion to acquire the world’s 39th-ranked shipping company

Abu Dhabi Ports (AD Ports) may spend US billion (approximately RMB 14.307 billion) to acquire Indonesian logistics and coastal container shipping company Meratus Line.

Meratus Line was first reported to be for sale in July this year. According to foreign media reports, AD Ports has become the most popular buyer. The state-owned terminal operator is seeking vertical integration of the maritime supply chain. So far, neither party has commented on this.

Information on the official website shows that Meratus is the first company in Indonesia to specialize in shipping, with more than 100 ships and more than 500 trucks operating on more than 45 routes. The company launched a direct express line from China to Indonesia in March 2022, but the service was suspended seven months later due to weak demand. In February this year, the company launched routes to Papua New Guinea.

Meratus currently operates 54 container ships in its fleet, with a total shipping capacity of 36,069TEU. According to Alphaliner data, it includes 53 owned ships and 3 chartered ships, ranking 39th in the world in terms of shipping capacity. Meratus also has a 693TEU container ship under construction in CSSC Guangxi.

At the same time, Meratus operates tugboat and barge business through its subsidiary Meratus Advance Maritim, as well as terminal business including Tanjuno Priok Port, Jakarta Port and Surabava Port. The company also formed an offshore shipping joint venture with Indonesian domestic shipowner Wintermar to operate four platform supply vessels (PSVs).

AD Ports began venturing into maritime shipping beyond its core port/terminal business in 2020 when it formed a joint venture with Singaporean short-haul operator Bengal Tiger Line (BTL) Safeen Feeders, whose terminals provide services between the Persian Gulf and the Indian subcontinent. feeder transportation services. Safeen is now part of AD Ports' shipping business and has expanded into dry bulk, tanker and ro-ro ocean shipping and offshore operations.

In November 2022, AD Ports agreed to acquire an 80% stake in Dubai-based Global Feeder Shipping (GFS). In July this year, AD Ports acquired Spanish logistics group Noatum for US7 million. Noatum has operations in 26 countries on five continents.

The latest data from Alphaliner shows that Global Feeder Shipping currently owns and operates 30 container ships with a total capacity of 72,518TEU. Safeen Feeders owns and operates 10 container ships with a total shipping capacity of 24,538TEU. After merging with Global Feeder Shipping and Meratus, the total container ship shipping capacity is 133,125TEU. The shipping capacity ranking will rank 18th in the world, ranking second only to X-Press Feeders and DP World. Subsidiary Unifeeder.

Tan Hua Joo, an analyst at shipping consulting firm Linerlytica, said: "Meratus operates two terminals in Jakarta Port and Surabaya Port in Indonesia. Meratus' Indonesian terminal can create synergies with AD Ports, which will expand AD Ports' business scope. In addition, , Meratus's shipping and logistics business is almost entirely concentrated in Indonesia, so there are few synergies with AD Ports' existing business. If AD Ports cannot obtain full regulatory approval, part of GFS's business may be spun off, but I believe The transaction will be completed.