October 16, 2009
ADM acquires oceangoing bulkers
Agribusiness giant Archer Daniels Midland Company (NYSE: ADM) has acquired five oceangoing dry-bulk carriers ranging in length between 179 and 225 meters (587 and 738 feet). The five carriers -- one Handy, one Handymax, a Supermax and two Panamax vessels--provide cargo-carrying capacity between 36,000 tons and 67,000 tons and will transport all types of grain, grain products and bulk commodities to and from ports in Europe, South America, Asia and other parts of the world.
"These five carriers compliment ADM's global transportation network and allow us to ship grain throughout the world with more flexibility and lower cost than outside carriers," said Royce Wilken, an officer of ADM Transportation. "As we continue to expand our continental transportation networks around the world, connecting these regions on a global scale aligns with our strategy to expand the geographic scope of our business."
The Handy carrier has a length of 179 meters (587 feet) and a deadweight of 38,147 metric tons. The Handymax carrier is 185.74 meters (609 feet) in length and has a deadweight of 45,674 metric tons. The Handy and Handymax carriers are equipped with self-unloading grabs, capable of unloading cargo without the assistance of shore-side equipment or personnel.
The Supermax carrier has a length of 190 meters (623 feet) and a deadweight of 52,262 metric tons.
The first Panamax carrier has a length of 224.95 meters (738 feet) and a deadweight of 73,040 metric tons. The second Panamax carrier is 225 meters (738 feet) in length and has a deadweight of 72,497 metric tons.
"In addition to providing us greater control of the supply chain, these vessels will improve operating margins, and help to position us ahead of our competitors with regards to net delivery cost," said Wilken. "The productivity gains these vessels bring to ADM will also help ensure that our just-in-time delivery capabilities are among the best in the industry."
Once in operation, the five dry-bulk carriers will augment ADM's transportation network, which also includes 1,700 barges, 58 tow boats, 29 line boats, 23,500 railcars and 1,600 trailers.