‘Safmarine MPV is not for sale’

The announcement last week that the AP Moller Maersk Group had hived off Safmarine’s MPV breakbulk division to make it a standalone operation within the APMM Group has put to rest industry speculation – which reached its peak last year – about the possible sale of the division. The move is about sector focus in the interests of efficiency and customer service, Safmarine MPV’s Antwerp-based managing director, Jorg Knuttel, told FTW last week, adding that it was no longer for sale but remained an important part of the APMM Group. Its transition is scheduled to be completed by the end of the first quarter of this year. “The liner and sales network of Maersk Line and Safmarine Container Lines is very successfully geared towards the container business,” said Knuttel. “Handling of project and breakbulk cargoes and multipurpose vessels, however, requires a different approach and it was decided that this was best delivered through an independent agency network dedicated to our business. “The decision to establish a separate network has the further advantage of allowing the Maersk Line and Safmarine liner agencies to continue focusing on the container business, while Safmarine MPV focuses on project and breakbulk cargoes. “A separate, dedicated agency structure will also assist Safmarine MPV in providing the best service to its customers, while allowing the MPV operation to reach its full potential,” he added. Safmarine MPV operates services from Europe, United States and South Africa to West Africa, and new agency appointments will be announced shortly in all those regions, he said. The Royal Burger Group has been appointed to represent the line in Belgium and the Netherlands. Norton Lilly International, which is headquartered in Mobile, Alabama was last week named as its full liner agent in the United States. The possible sale of Safmarine MPV was an open secret in the industry last year. Knuttel explained: “Following the move of the headquarters of Safmarine Container Lines to Copenhagen, the MPV division of Safmarine basically found itself without a home or place within the Group at that time. Throughout 2012 the Group explored a possible divestment process for the division as one of several options and entered into due diligence processes with interested parties. “Given that parties could not reach agreement, the Group decided to set up Safmarine MPV independently within the Group to ensure that the MPV operation could reach its full potential.” Improving the business and serving its customers is now its only focus, said Knuttel, who is upbeat about the future. “Despite some internal uncertainty around our future last year coupled with the global recession, we came out OK,” said Knuttel of the company’s performance last year. “Looking ahead, we have a good plan and an owner who is prepared to back us, so we have a positive outlook.” CAPTION Jorg Knuttel … positive outlook.