Gearbulk and Grieg Star are joining forces to create a giant 130-ship strong dry bulk fleet.
The JV will be jointly controlled by Gearbulk and Grieg Star, with Gearbulk owning 65% and Grieg Star owning 35%. The board of directors will be composed of five members; three appointed by Gearbulk and two appointed by Grieg Star. Chair of the board of directors will be Kristian Jebsen, with Grieg Star holding the vice chair.
“This agreement represents the firm intention of both companies to build an improved range of services for our customers. The combined number of vessels and trades will make it easier for our customers to find services that fit their needs,” said Kristian Jebsen, chairman and CEO of Gearbulk.
“The talks and cooperation throughout this process have built an invaluable trust and confidence between the parties. The two companies both have strong corporate cultures and values, and we aim to take the best from the two, and merge them into one strong, customer-oriented culture,” said the chair of Grieg Star, Elisabeth Grieg.
The name of the open hatch specialist joint venture is yet to be decided, but it will be established as an independent Norwegian company with headquarters in Bergen. The ceo will be Rune Birkeland, and the cco will be Arthur English. The JV is expected to be fully operational in the first half of 2017.
“In an increasingly competitive market, we believe this new entity will have the size to build and sustain a versatile and independent shipping service,” said Camilla Grieg, CEO of Grieg Star.
The two parties will retain their independent technical shipmanagement and ownership in the vessels.
Further, the scope of the joint venture excludes activities and vessels operated by Gearbulk in association with other third parties, as well as terminal business, transhipment activities, operation of liquid pitch tankers and caustic bulk vessels. For Grieg Star, their terminal businesses will also remain outside the scope of the new JV.