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PIF-backed shipping firm Folk Maritime is lining up a multi-mn USD fleet expansion over the next five years, CEO Poul Hestbaek told Bloomberg. The shipping firm will buy or charter 15 to 18 container ships in the next three to five years to increase access for KSA’s smaller ports and alleviate demand for road transportation.
The breakdown: The firm aims to purchase about two-thirds of the ships it plans to add to its fleet and will charter the rest, Hestbaek says. The firm acquired its first vessel this year and leased two additional ships. “We are working on a long-term strategy … first and foremost, the geographical scope is the Red Sea, all the countries surrounding the Red Sea,” Hestbaek added.
We saw this coming: Folk Maritime looks to order its own fleet of vessels with a tonnage capacity customized for trade around the Middle East over the next three to four years, Hestbaek told Seatrade Maritime back in August. “We believe that by having some unique designs and some unique features on the feeder and short sea vessels that we will be operating, we can gain on cost competitiveness,” he said.
Folk has been ramping up on services: Folk Maritime said it is launching a new liner service this month that connects Jeddah Islamic Port to India’s Mundra and Nhava Sheva, as well as new services connecting India with the Red Sea and the Arabian Gulf in 4Q 2024. French shipping giant CMA CGM partnered with Folk Maritime back in March to launch an upgraded service connecting ports in the Red Sea. The Saudi Port Authority (Mawani) has added a new shipping service by Folk Maritime connecting Jeddah Islamic Port with Port Sudan.
And wants to add more: The shipping outfit also plans on introducing three new routes next year to connect India to the Red Sea region, the Gulf, and Eastern Africa — adding on to the two routes it currently operates in the northern Red Sea.
