Sale of Kotug Smit to Boluda is completed

The history of harbour towage in Europe is one of the breaking of monopolies, mergers, takeovers and consolidations. In more recent times however towage operators have been affected by consolidation and mergers within the container liner shipping sector, important clients for harbour tug owners. Fewer customers (by numbers) have resulted in tighter margins and towage operators have gone down a similar road.

In hindsight perhaps, the joint venture agreement between Kotug and Boskalis (Smit) in 2016 should not have been the surprise it was, making the takeover of Kotug Smit Towage by the Spanish Boluda Group somewhat easier to understand.

Boluda will now add 67 vessels to its fleet, increasing its European presence to include: Rotterdam, Terneuzen and Flushing in the Netherlands; Liverpool, London Gateway and Southampton in the UK and Zeebrugge, Ghent and Antwerp in Belgium. In Hamburg and Bremerhaven Boluda Towage will strengthen its position in the German towage sector where it has operated since 2017.

The stock acquisition of Kotug Smit Towage is valued at €300m and the relevant regulatory approvals have now been secured allowing the agreement to be formally signed. The purchase is part of Boluda’s expansion plans which have included the acquisition of German towage company URAG in 2017, also companies operating in the Americas, France, west Africa and the Indian Ocean.

The wealth of experience behind each of these players is reflected in their origins dating from 1837 for Boluda, 1842 for Smit and 1911 for Kotug and it is important to note that both Boskalis (owners of Smit) and Kotug are not disappearing from the towage scene. Boskalis provide a wide range of services including offshore and ocean towing and maintains the Smit Salvage brand while Kotug operate high-spec tugs in Europe, Russia, Asia, Australia, Africa and the Caribbean.

Kotug CEO Ard-Jan Kooren said: “We thank all staff and crew for the professional and pleasant cooperation in the past years. I am confident that with the takeover of Kotug Smit Towage Boluda will adequately respond to the further consolidation of shipping businesses in the European harbour towage industry”.