Marine Harvest and Deep Sea Supply PLC have entered into a Heads of Agreement to establish a 50/50 owned aquaculture shipping joint venture to build, own and operate aquaculture vessels.
Both companies believe there is significant room for efficiency improvements across the value chain in aquaculture shipping, ranging from reduction in newbuilding cost to more cost-efficient operations. Accordingly, Marine Harvest aims to significantly reduce costs related to vessel services through establishing the JV.
Over the past few years aquaculture vessels have increasingly become an integrated part of the value chain. Marine Harvest charters 44 vessels with a combined cost of approximately €100m per year, making Marine Harvest the industry's largest charterer of such vessels.
The JV expects to enter into contracts for the construction of aquaculture vessels which will be chartered by Marine Harvest upon delivery. Current discussions indicate a substantial reduction in newbuilding cost compared to solutions provided by alternative aquaculture providers. The JV entity will be Marine Harvest's preferred provider of aquaculture vessels, and the intention of the JV is to also compete for external contracts.
Deep Sea Supply is an owner and operator of supply vessels and has a proven track record of building and operating vessels in a cost efficient way.
