Posted on September 4, 2024
Ports operator is boosting its logistics business globally
Dubai-based ports operator DP World has completed the acquisition of Cargo Services Far East, a Hong Kong-based supply chain provider, as part of its efforts to bolster its integrated logistics business.
The deal brings DP World’s total number of employees to more than 115,000, spread across 800 locations worldwide, the company said on Monday.
By the end of this year, it will operate more than 200 freight-forwarding offices, covering up to 95 per cent of global trade flows.
Financial details about the acquisition were not revealed.
The deal will allow DP World to take advantage of Cargo Services’ expertise and network and help the company to support “customers seeking to strengthen existing trade ties or enter new markets”, said Sultan bin Sulayem, group chairman and chief executive of DP World.
Cargo Services employs more than 2,500 people in Greater China and across Asia, Europe, South Africa and the US.
The company offers solutions such as origin purchase order management, ocean and air freight, as well as warehousing, serving sectors such as retail and high fashion in the US, the UK, Europe, South Africa, Australia and New Zealand.
Cargo Services also offers specialised cruise logistics services worldwide.
John Lau, managing director of Cargo Services, will assume a senior role in DP World.
The announcement comes amid DP World’s expansion globally.
In July, DP World and Evyap Group merged their Turkish operations to create a logistics business aimed at boosting trade in the country.
In June, it completed a $400 million expansion project at the Port of Callao in Peru as part of its efforts to increase capacity across Latin America.
In May, DP World and the Saudi Ports Authority also began construction of a logistics park in the coastal city of Jeddah, which is expected to grow the kingdom as a crucial trade centre in the Middle East.
In the first half of this year, DP World’s revenue grew by 3.3 per cent to $9.34 billion, while adjusted earnings before interest, taxes, depreciation and amortisation fell by 4.3 per cent to about $2.5 billion.
“The year 2024 has been marked by a deteriorating geopolitical environment and disruptions to global supply chains due to the Red Sea crisis,” Mr bin Sulayem said in an earnings report last month.
“Nevertheless, our strategic emphasis on high-margin cargo, comprehensive end-to-end supply chain solutions, and stringent cost management have been crucial in achieving this financial performance.”
