Sturrock Shipping

Sturrock Shipping goes global

HKSA and McArthur logos

Sturrock Shipping have a wealth of experience in the international ship’s agency business and we look forward to the opportunity to exploit the numerous synergies that exist between the southern African and Australian companies”

Sturrock Shipping goes global

Sturrock Shipping, a leading Ships' Agency and Clearing & Forwarding company in sub-Saharan Africa, has announced the acquisition of a successful and established ship's agency business in Australia.

The deal will provide Sturrock Shipping with an immediate nationwide presence in Australia as well as improved access to the burgeoning Asian and sub-continental markets.
Sturrock Shipping has acquired 100% of the share capital of the operating companies held by Meware Pty Ltd. These companies include Hetherington Kingsbury Shipping Agency Pty Ltd and the McArthur Shipping & Agency Co Pty Ltd - the two largest companies - as well as Pacific Shipping Agencies Pty Ltd and West Coast Shipping Agencies Pty Ltd.

Sturrock Shipping was founded in 1969 in South Africa. Over the last decade it has expanded its operations into Africa, establishing a presence in Mozambique, Kenya, Tanzania, Madagascar, Angola and Sudan. The company is currently seeking to broaden its reach to include Namibia, Ghana, Sao Tome, Equatorial Guinea and Gabon.

The Australian deal establishes the company as an international ship's agency with significant experience in both the tanker market - Sturrock Shipping's traditional specialisation - and the dry cargo and liner business (HKSA and McA's specialisation).
Sturrock Shipping Managing Director Andrew Sturrock says that Australia provides a compelling business case for investment, both in its own right and by virtue of its proximity to Asia.

"Australia's resilience through the global economic downturn has emphasized its credentials as one of the world's strongest developed economies - one with good future prospects. It offers investors' political and economic stability and a sophisticated and transparent business, legal and regulatory environment.

"Key clients, however, are typically non Australian-domiciled and include the usual spread of international owners, charterers and traders. The international Principals represented are predominantly Asian with some companies having been represented for more than 35 years.

"The global economic recovery bodes well for the future of these ships agency businesses as Australia is a large exporter of commodities (including coal and iron ore) and agricultural produce (including maize and sugar), and has Asia on its doorstep," he says.

Sturrock also notes that Hetherington Kingsbury Shipping Agency and the McArthur Shipping & Agency Co are two of the last big agencies left that could be acquired in Australia and that McArthur's is a stakeholder of the international ship's agency network S5, which is represented in South and East Africa by Sturrock Shipping.

He says that in terms of the deal, Michael Phillips, current Managing Director of Hetherington Kingsbury and McArthur and a Director of Meware, has agreed to continue in the position of CEO of the operating companies going forward. All other members of staff will also be retained.

"These businesses are fully functioning going concerns that are extremely well run. With 13 offices around Australia, they provide us with a nationwide presence and a platform to market Sturrock more effectively and efficiently in Asia. We have a wealth of experience in the international ship's agency business and look forward to the opportunity to exploit the numerous synergies that exist between the southern African and Australian companies," he concludes.

 

Tuesday, June 2, 2010