Transport and logistics group, MOVE Logistics Group Limited (NZX/ASX: MOV), has completed the purchase of the Atlas Wind, out of Europe.
This vessel will be utilised for MOVE’s new trans-Tasman shipping route, as previously advised, with the first sailing scheduled for Q4 2022. The repositioning costs from Europe are covered with paying cargoes secured by MOVE.
The Atlas Wind can carry 366 containers, or the equivalent of 5,000 tonnes of bulk cargo. With two cranes on board, the vessel has the ability to call into ports that historically may not have been able to accept containerised and bulk cargoes.
Executive Director, Chris Dunphy, said: “We identified a gap in the market and are stepping up to provide much needed sea freight access for regional New Zealand and Australian businesses.
Customer interest and demand has been strong, with several large customers already contracted to use this new transport solution. The new Oceans trans-Tasman service more than adequately meets our internal rate of return, is earnings accretive and will greatly benefit both MOVE clients and shareholders alike.”
MOVE is in the process of establishing MOVE Oceans Singapore PTE Limited, a new Singaporean wholly owned subsidiary to own the Atlas Wind. It is expected that this new subsidiary will be incorporated in the next two weeks. In the interim and to facilitate settlement, Christabell Maritime PTE Limited has acquired title to the Atlas Wind on bare trust for MOVE. Once the incorporation of MOVE Oceans Singapore is completed, Christabell Maritime will immediately transfer ownership of the Atlas Wind to MOVE Oceans Singapore. Christabell Maritime is owned by Chris Dunphy, executive director of MOVE.
In an earlier statement, MOVE noted that the maiden journey will be the first of a regular monthly voyage that will see goods shipped between regional New Zealand ports including Nelson, Timaru, New Plymouth and Bluff, across the Tasman to Tasmania and other east coast ports in Australia. For some of these regions, the MOVE service will be the only direct ship route, while in other regions, it will provide a further option for customers currently facing shipping constraints and difficulties.
Cornerstone customer, BioMar Australia, will be utilising the direct service to ship its high-performance fish feed from Tasmania to key aquaculture businesses in New Zealand.
CEO of BioMar, David Whyte, says: “We’ve worked in partnership with MOVE to create an innovative logistics solution which will support our business, our customers and will also benefit other Tasmanian businesses. Not only does this new direct service make for a faster, cheaper and ultimately more efficient supply chain, having one trusted logistics partner also reduces complexity and risk for our business. We will be utilising MOVE’s extensive network to deliver our products to customers once they reach New Zealand’s shores.”
General manager of MOVE Oceans, Dale Slade, commented: “While the aquaculture industry has been first off the mark to recognise the value of a direct, regional trans-Tasman shipping route, we have also received commitments and strong interest from a range of other businesses. New Zealand’s regional businesses make up the backbone of our economy; we are delighted to be able to provide further support for their growth and success through the new MOVE Oceans offer. This unique new service allows MOVE to offer a true door to door supply chain, transporting customers’ goods from our vessels to trucks and into MOVE warehousing before final mile delivery.”
