Norway’s Marine Harvest has entered into a 50/50 joint venture with Cyprus-based Deep Sea Supply PLC for the purpose of building, owning and operating aquaculture shipping vessels.

Marine Harvest spends €100 million – the highest amount in the industry, to charter 44 vessels every year. Both Marine Harvest and Deep Sea Supply believe that there are significant cost efficiencies that are not being realized along the aquaculture supply chain. Marine Harvest plans to charter vessels as they are produced through the joint venture, which will serve as the company’s preferred provider, reducing the company’s operational costs.

“The aquaculture shipping industry is fragmented and characterized by lack of competition. Through the JV, Marine Harvest and Deep Sea Supply aim to consolidate the industry to achieve economies of scale,” expressed Marine Harvest in a company statement.  

Deep Sea Supply is an offshore supply company that operates a total of 39 Offshore Support Vessels in the North Sea, West Africa, Mediterranean, South East Asia, and Brazil.  The company has a track record of cost efficient building and operating of shipping vessels, and will cover all technical corporate and ship management for the venture.

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GAI News staff