DP WORLD has completed the acquisition of global supply chain provider Cargo Services Far East, the global port operator announced yesterday (2 September).
Hong Kong-headquartered Cargo Services is lobal supply chain provider specialising in origin services, the moving of goods from logistics facilities to customers.
DP World chairman and CEO Sultan Ahmed bin Sulayem said Cargo Services’ logistics expertise and global network perfectly compliments DP World’s own, and the acquisition is yet another tool in its offering to customers.
“Together, we’ll create a powerful force propelling trade globally,” Mr Sulayem said.
“By combining our strengths – technology, a growing logistics portfolio and strategic infrastructure – with Cargo Services’ expertise and network , we will be able to offer unparalleled value to customers seeking to strengthen existing trade ties or enter new markets.”
Following the acquisition, DP World reports to now have more than 115,000 employees over 800 locations globally, and by the end of the year it will operate more than 200 freight forwarding offices, covering up to 95% of global trade flows, the port operator claims.
Industries such as automotive, chemicals, healthcare, perishables, retail and technology, require tailored logistics solutions, according to DP World, who say they will be strategically focused on creating specialised offerings that address each sector’s specific challenges and opportunities.
Cargo Services was one of the earliest foreign logistics providers to enter the Chinese market, having been founded in 1989.
The company’s portfolio includes origin purchase order management, ocean freight, air freight, and warehousing, including supply chain management services for retail and fashion customers in the US, UK, Europe, South Africa, Australia and New Zealand.
John Lau, group managing director of Cargo Services Group said, “By joining DP World, we will gain access to extensive resources and expertise, allowing us to continue delivering top-tier freight-forwarding and logistics services that our customers demand”.
“With a shared vision and strategy, I am confident that our respective teams will come together seamlessly to deliver growth.”
With the acquisition process now officially complete, DP World says there are plans for full integration over the coming months.
“The combined team will put together all required resources to ensure a smooth integration process, prioritising operational continuity, and delivering to meet customers’ needs,” DP World’s announcement said.
To ensure a seamless transition, DP World says Mr Lau will remain with the business and assume a senior leadership position within DP World.
