Royal Boskalis Westminster has signed a Memorandum of Understanding (MoU) with Sudamericana Agencias Aereas y Maritimas (SAAM) for a joint harbour towage operation within the American continent.

The partnership involves two joint ventures and is between Smit, a wholly owned subsidiary of Boskalis, and SAAM.

Brazilian Towage Market

The geographic scope of the first joint venture covers the Brazilian towage market. Both companies are currently active in Brazil and Boskalis with Smit will have a 51 per cent majority share in this joint venture. The combination with a total of 41 tug boats will form an important  player in the growing market of Brazil.

Panama, Canada and Mexico

The second joint venture in which SAAM will hold a 51 per cent majority stake relates to the towage activities in Panama and Canada (Smit) and Mexico (SAAM). The combination will operate a total number of 55 tug boats.

The joint operation between Smit and SAAM will create a leading provider of towage services in Central and South America. Besides operational synergies, the joint operations will also strengthen the market position of the combined companies. The total value of the Smit and SAAM assets respectively that will be contributed to the combined joint ventures is comparable. The implementation of the MoU is subject to certain customary conditions including a due diligence process and approval from regulatory agencies in the respective countries involved.

Picture: One of Smit's tugboats in action (by Smit)