Australia, Company News, Freight News, Logistics News, Port News, Shipping News, Supply Chain News

Titan live export shipper sells final vessel

One of Australia’s biggest players in the live export supply chain has sold its final vessel, the M/V Ocean Drover, ahead of the impending live sheep export ban

The impact of Australia’s impending sheep live export ban is already being felt in the livestock transport supply chain, with industry giant Wellard Limited finalising the sale of its final livestock vessel – the M/V Ocean Drover – for $81.2 million.

Wellard Limited has been operating since 1950 and commenced its first live export shipment from Australia in 1979.

The Drover was constructed in 2002 and was capable of transporting 75,000 sheep or 20,000 cattle and had travelled over two million nautical miles in its first 20 years of operation.

The vessel has been purchased by Meteors Shipping SA, a Marshall Islands company controlled by Göktaşlar Et-Et Ürünleri Yan Sanayi ve Ticaret Limited Şirketi, a significant Turkish agribusiness with which Wellard has conducted successful business for some time.

The Wellard board announced the company would be commencing a strategic review to explore the future of the company and the commercial environment.

As the last asset of the company the sale of the Drover is subject to shareholder approval.

“We are very pleased to have achieved a sale price substantially above the current net book value of the vessel, and we believe that this sale represents the highest possible value that can be realised for shareholders from the M/V Ocean Drove in the current market,” Wellard Executive Chairman John Klepec says.

“The M/V Ocean Drover has been the flagship for the Wellard fleet in terms of profitability and capacity, and I have no doubt it will be a fantastic asset for its new owners.

“Subject to shareholder approval the sale of the M/V Ocean Drover will bring an end to Wellard’s 46-year involvement in the global live export industry.

“Throughout its history Wellard has set a quality benchmark for global livestock trading and logistics, has been a major force in driving and maintaining the highest standards the public expects of modern agribusiness, and has helped feed the world.

“I thank our many local and international customers and other stakeholders, particularly current and former staff and service providers, who have been supportive of Wellard’s business throughout its journey.”

Given the sale of the Drover, which represents Wellard’s sole remaining revenue-generating asset, and the costs of remaining a publicly listed entity, Wellard’s board will consider the possibility of delisting from the ASX and continuing as a public unlisted company.

Wellard currently has confirmed charters for the vessel until June 2025, and subject to fulfilment of all conditions, expects completion of the sale to occur in July 2025.

Read more ATN:
Transurban slammed for latest round of toll hikes
Lineage boosts Australian cold supply chain presence
AustralianSuper adds logistics portfolio joint venture

Previous ArticleNext Article
  1. Australian Truck Radio Listen Live
Send this to a friend