Dubai-based
Tomini Shipping is under going a significant evolution. A new CEO was appointed in 2021, along with two additional members of the board. Buoyed by the new-look management team , Tomini is also embarking on a substantial fleet expansion.
“Over the course of the modern itera tion of Tomini, since 2012,” explained CEO Numair Shaikh, “we predominantly operated in the SMX and larger (UMX/KMX) sectors. However, since December 2021, we have secured 13 handysize or 38-39,000 tonners with a staggered delivery over the course of the following year.”
Tomini Shipping was founded in 1952 as the United Oriental Steamship Company. Over the past 70 years, the company has responded to the demands of the market. A significant turning point was the 1982 partnership with Alpina Chartering ApS in Denmark to manage the chartering of vessels. A move to Dubai in 2004 provided Tomini with a global hub to continue to grow the business. A strategic decision was then taken to focus exclusively on dry bulk as the core business.
“Tomini’s head office is based in Dubai where the technical and support service teams operate,” Mr Shaikh said. “We have two crew management centres in Mumbai and Karachi where the teams administer pre-joining (CES) tests for new crew to ensure we recruit the highest calibre of seafarer. The Tomini commercial team is
based in Denmark and manages the oper ations of the entire fleet.
“Tomini’s business philosophy is built on trust and building deep relationships that focus on long-term cooperation with part ners and clients. Our experienced teams in the UAE, India, Pakistan and Denmark work to create the highest level of value, reflecting Tomini’s belief that diversity drives creativity, collaboration and the understanding of our clients’ needs.”
The projected 2022 total turnover for the Tomini Group is around $160 million with an EBITDA margin of 70%. Shipping remains 90% of the business, but the group has diver sified into other industries including classic cars and plant machinery.
A handy fleet
Tomini’s fleet has evolved through the c om pany’s history. The current fleet consists of three Kamsarmax, ten Ultramax and eleven handysize bulk carriers, with another two handysize vessels to be delivered. The total capacity of this fleet is over 1.5 million DWT, with an average age of 4.8 years. The United States Coast Guard has certified Tomini Shipping’s management office and fleet vessels for QUALSHIP21, a testament of its quality ship management.
The fleet expansion programme focuses on the 13 handysize for two main reasons, described by Mr Shaikh: “Handies have been the least volatile of the dry bulk segments over the past few years. Due to greater
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Numair Shaikh, CEO
TOMINI
stability, they have even traded higher than their larger counterparts over periods throughout the last few years.
“Secondly, we see a very positive supply side picture on the handies, with relatively few new builds on order, and an ageing pro file of the existing fleet. This leads to greater recycling numbers due to incoming environmental regulations, meaning the fundamentals are very much in favour of a positive handysize segment. We were also able to secure several of the handies at good prices.”
Under new management
There are more changes happening at Tomini Shipping: recently, the company took over its first ever vessel for third party management.
“This is a natural progression for us,” stated Mr Shaikh. “As ship owners we are unique by undertaking all our management operations fully in-house, from technical and commercial management to crewing, procurement, provisions, etc, all performed for our own fleet to excellent standards.”
The other big news at Tomini is the appointment of Mr Shaikh as the new CEO.
“It is an honour to be a custodian of both our esteemed heritage and our values for future generations to come,” he said.
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“During any major change of top manage ment, the initial phase is just to ride out the consequential turbulence that change brings, and allow for the organisation to come together and continue moving for ward together once more.
“Looking at the company, the youth and talent within, I envision Tomini as being on the cutting edge of ship owners, technical and commercial management. All without losing sight of what helped us to stand out over the past 70 years, which is a fantastic ability to read the market and to work counter-cyclically.”
Dynamic business
During the steady expansion of Tomini’s fleet, the company remains active in its core business.
“We work the market each and every day,” continued Mr Shaikh, “looking at both spot and period charter opportunities that align with our chartering strategy, keeping in mind our deliverables to our key stake holders and wider aims.
“Doing our own in-house technical management means a committed focus on the quality and maintenance of our ships, making our fleet extremely attractive to all top operators and charterers. This is how we maintain our relationships with the likes of Cargill, Norden, PanOcean, Oldendorff,
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Clarksons, to name a few of our key com mercial relationships. Charterers know that when they fix a Tomini vessel, they are getting a vessel they can have the upmost confidence in to conduct their business.”
The appeal of Tomini to charterers is based upon the benefits of the company’s complete package of in-house ship manage ment services. Tomini also focuses on pro viding a total service package to its clients.
“Good relationships are built on trust and consistency,” Mr Shaikh said. “We pride ourselves on keeping our vessels to high standards, so our chartering part ners have the upmost confidence in our ability to trade worldwide.
“In a dynamic industry such as shipping, where anything can happen at a moment’s notice, you need to act quickly and decisively to fix an issue, be it expedited delivery of spare parts, or advice and support from our partners in class and flag. It is in these moments that your relationships are really tested, and I am pleased and honoured to say that at Tomini we have excellent part ners that can be relied on in any situation.”
Facing these daily challenges is one of the appeals of the business for Mr Shaikh: “Shipping situations can change in an instant, necessitating quick thinking and swift decision making. I really relish these opportunities, with my excellent team around me.”
Giving and growing
The Tomini Social Impact Programme is part of the company’s long tradition of contributing to local communities. The key pillars of the programme are education, healthcare and the environment as the company addresses social inequalities and empowers people and communities.
Tomini’s recent fleet expansion fur thers its environmental commitments, as a predominantly modern fleet will enjoy
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a lower carbon footprint. Over the years, Tomini also embarked on its first ever new building project. Between 2012 and 2021, 10 ECO Ultramax and two Kamsarmax vessels were delivered, all under the super vision of its in-house team.
On the back of a remarkable 2021, Tomini Shipping has maintained its momentum in business as Mr Shaikh explained: “We have great confidence in the dry bulk industry and the market as a whole for this year and beyond, as countries around the world con tinue to try and grow their way out of the Covid crisis.
“At the same time, we are also very much aware of many headwinds in the short term that will continue to contribute to the volatility synonymous with dry bulk, including the Ukraine-Russia conflict and China’s continued importance to the dry bulk segment in the face of apparent domestic economic troubles and a policy for self-reliance. This is combined with the fact that Covid is still causing delays and thus bringing plenty of volatility into the industry at large.
“ We are entering a crucial phase for our company and industry as a whole,” Mr Shaikh concluded, “with the next few decades likely to be dominated by environmental regulations. The entire organisation is committed to ensuring that Tomini rides this wave and stays at the forefront of this new era, constantly adapting and bettering ourselves.” n
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