Posted on April 3, 2024
DP World is looking to partner with “niche players” in the US, Canada and Mexico to support changing customer demand in the wake of diversified transpacific supply chains.
Volatile supply chain factors, such as geopolitical tensions, environmental impacts and port strikes, have resulted in companies looking to de-risk and stabilise their supply chains.
One major trend noted by DP World’s chief executive of US and Mexico, Glen Clark, is the diversification in the transpacific trade.
“We’re watching this play out right now – major companies shifting their supply chains around the globe,” Mr Clark told The Loadstar Podcast. Last year, Mexico overtook China to become the largest exporter to the US for the first time in 20 years. This year, Canada is a contender to take second place, which would push China down to third.
“What DP World can discuss is what we can use with our assets, ports and terminals etc, within Canada and Latin America, and what solutions for handling we can provide there,” he added.
DP World announced last month it was opening 100 freight forwarding branches globally, to enhance its capability as an end-to-end solution provider in the ever-changing market.
“In Mexico this time last year, we had one office. We’ve got 14 today. We’ve added these great people, processes and systems to be able to navigate and help provide more solutions to customers in this really treacherous time.”
And, while DP World has a network spanning some 190 countries, Mr Clark told The Loadstar that achieving scale was not just about size.
“It’s about enhancing every aspect of our operation, from customer service to environmental responsibility. Our goal is to continually improve our offerings, ensure they are meeting the evolving needs of our customers and stay ahead of the industry trends,” he said.
In order to achieve this, DP World is looking for strategic M&A opportunities with niche service providers across the Americas, and beyond. Mr Clark said: “We’re in the midst of that time of the year where we’re trying to negotiate contracts and get new services offered… Collaboration and working with each other is key to finding these solutions.”
He pointed to the November 2023 acquisition of car transporter CFR Rinkens and said: “It was a very much a strategic fit with the vertical of automotive solutions, focusing its capability on finished goods.
“Right now, from a finished vehicle perspective, between Mexico, Canada and the US there’s a lot of pent-up business sitting there because there’s not enough opportunities to move vehicles. So, there was a good fit there,” explained Mr Clark.
“And so, we’re definitely looking at how we can find niche players in the area that would support the overall strategy of the business and help us to develop and meet the customer demand.
“Customers are looking for options. We really are working collaboratively with them to provide more options and more opportunities,” concluded Mr Clark.
