By Dipo Olowookere
Two shipping vessels to aid the exportation of sugar to West African markets have been acquired by BUA Foods Plc, one of Africa’s leading FMCG companies.
They were built in Japan by Mitsubishi and are named MV Bundu, after the area in which the refinery is located.
However, only one has been delivered to the Nigerian firm, with the second expected to arrive by the end of the second quarter of 2022 to promote cross border trade to businesses across the West African region and other African countries.
A statement from the firm disclosed that the vessels’ cargo capacity is suited to enhance quick and sustainable delivery of more refined sugar in the face of growing export demand from across the African region.
It will depart and berth at BUA’s port and terminal with refined sugar of high-grade quality processed from BUA Foods’ ultra-modern sugar refinery located in Port Harcourt, which has a capacity of 750,000 metric tons.
BUA Foods explained that the acquisition of the vessel will increase the company’s export capacity, reduce operating costs, provide an alternative source of income and benefit the economy.
“As we drive our business for growth with a focus on sustainable returns, and benefit to all our stakeholders and the Nigerian economy, owning a shipping vessel is an important step in BUA Foods strategy,” the Chairman of BUA Foods, Mr Abdul Samad Rabiu, was quoted as saying in the statement signed by the company’s Director of Marketing and Corporate Communications, Adewunmi Desalu.
The Chairman further said, “We see an increased and continued demand for refined sugar across the region with the attendant increase for logistics support to aid timely delivery, which is why it is important for us to strengthen our current capability with our own controlled asset as we advance further in our business strategy.
“These new vessels will create operational efficiencies in our business and open possibilities for new services.”
With this acquisition, BUA Foods believes it is well positioned to take advantage of the AfCFTA, considering its investments in the food sector over the years.
“Owning a vessel to export sugar is a crucial enabler of flexibility and agility in our total supply chain as it allows our customers to tackle time-critical fulfilment challenges due to timely availability of their goods,” the Managing Director of BUA Foods, Mr Ayodele Abioye, stating, adding that, “As we expand our customer base into the region, we strongly believe in working closely with them towards meeting and surpassing their needs in time and in full.”
