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Why Greek Shipping?

By : Ziad K Abdelnour| 29 September 2014
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With our Firm’s recent signing of a 200 Million Euros Partnership Agreement to Fund & Facilitate the Purchase of 25 Vessels – http://www.pr.com/press-release/582221. I am frequently asked by partners and observers alike why a Greek company as a platform for our roll-up and why a particular interest in the shipping industry.

Hopefully this will shed some more light as to how we at Blackhawk operate.

1. The rationale? Blackhawk is first and foremost a “physical commodities trading house” and second a “family office private equity shop”. What better business model to adopt than building a vertically integrated operation that controls the whole commodities trading food chain from logistics to trading and investing all under one roof? This partnership with Golden Sea Ways accomplishes all of that and more and we at Blackhawk cannot be more excited about it.

2. Why Golden Sea Ways? (www.goldenseaways.com) Because it is one of the few super profitable shipping companies that bootstrapped itself, became profitable right from the start and without raising any outside capital – unlike most shipping companies out there – which despite all the money raised are still not profitable..

3. Why start in Greece? Greece, a small country of 11 million, is the world’s foremost shipping superpower, and has been almost without interruption for the last four decades. According to the latest figures from the Union of Greek Shipowners, the Greek-owned ocean-going fleet consists of 3,428 ships, totaling 245 million deadweight tonnes in capacity. This equals 15.6 percent of the carrying capacity of the entire global fleet, including 23.6 percent of the world tanker fleet and 17.2 percent of dry bulk.

4. Why a family based company in Greece? Well, here again, Greece’s shipping companies defy almost every stereotype that Greeks have been associated with these past years. They are ultra-competitive in a truly globalized market; their family-based structures are an indispensable source of strength rather than weakness; and they are unabashed proponents of the free market when it comes to the transcontinental sea trade, even while in Greece itself, most industries still struggle under the weight of over-regulation and barriers to competition. In a reversal of the narrative that has dominated headlines, in shipping – in particular the container sector – it is well-positioned Greeks who are “bailing out” mismanaged German shipping funds, which over-extended themselves before the global shipping crisis hit in 2008 and are now selling off their ships for a pittance.

Bottom Line: Since our business is first and foremost about working closely with the management teams of companies that have strong business franchises, attractive growth prospects, leading market positions, and the ability to generate superior returns we believe that time cannot be better than today when it comes to capitalizing on this great opportunity in the making.

Greek shipping is a key enabler and a major beneficiary of the rise of China during the previous decade. It is estimated that in 2007, at the peak of the China boom, 60% of the Asian giant’s raw material needs were supplied by Greek-owned ships. Given the nature of our business – at the heart of the oil trading business- the time is NOW.

Everything the Firm does is guided by a set of principles that define its character and culture; they have been at the core of Blackhawk since its inception. These enduring qualities are the shared convictions that we as partners bring to our professional and personal conduct – they are a fundamental strength of our business.

Comments

  1. T. Peter PappasT. Peter Pappas

    Ziad,
    Let me join Paul in wishing you success in your shipping venture. Luck plays a big role in shipping! Timing is most important when buying or selling and no matter how well you calculate the odds there are so many factors beyond calculation you need a little luck too!

  2. Paul MoranPaul Moran

    I would wish you luck Ziad but I am sure luck has no part in the strategic and tactical forward planning as demonstrated by Blackhawk Partners latest deal.Instead I wish you smooth sailing!

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