AsiaContainersMiddle East

Shreyas explains why feeder lines have to consolidate

It’s not just at the top of the container leaderboard where consolidation is necessary to survive; the world of feeder operators is also coming under tremendous pressure.

DP World-controlled Unifeeder Group confirmed last month it is buying Transworld Feeders FZCO, Avana Logistek , including its subsidiary Avana Global FZCO, and Transworld Feeders, the containerised Indian coastal and EXIM feeder shipping operations of Shreyas Shipping and Logistics, excluding vessels and bulk operations. The proposed transaction is meant to be completed by the end of the year and would place Unifeeder as the world’s largest feeder operator.

Such scale could only have been accessed inorganically

Putting some flesh on the bones to the deal, Shreyas Shipping and Logistics, part of the Transworld Group, explained the rationale for the deal in a release to the Bombay Stock Exchange.

Shreyas Shipping and Logistics’ EBITDA has declined by around 60% since 2018, with the company citing an inability to grow revenues in line with costs in an “increasingly competitive environment”.

“Greater scale together with a robust network of in-land terminals, port and marine infrastructure is critical to delivering efficiencies to the customer,” Shreyas Shipping and Logistics stated, adding: “Such scale could only have been accessed inorganically”.

Further feeder consolidation is in the offing across the world with X-Press Feeders, close to being toppled off its top spot, readying its own acquisitions.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
Back to top button