Global multi-modal supply chain company DP World has strengthened its foothold in the APAC region with the acquisition of Hong Kong-headquartered freight company Cargo Services Far East Limited.
Cargo Services currently employs over 2500 people across China and Asia, Europe, South Africa and the United States, and manages origin purchase order management, ocean freight, air freight and warehousing across a range of sectors, specialising in retail and fashion logistics.
Cargo Services Group Managing Director John Lau will remain with the business and join DP World senior leadership.
“By joining DP World, we will gain access to extensive resources and expertise, allowing us to continue delivering the top-tier freight-forwarding and logistics services our customers demand,” Lau says.
“With a shared vision and strategy, I am confident our respective teams will come together seamlessly to deliver growth.”
The acquisition means that by the end of the year DP World will operate over 200 freight forwarding offices in over 800 locations across the globe and will cover up to 95 per cent of global trade flow.
Group Chairman and Chief Executive of DP World Sultan Ahmed bin Sulayem says the acquisition of Cargo Services will strengthen DP World’s potential to offer services to customers.
“Cargo Services’ logistics expertise and global network perfectly complement our own footprint and will be yet another tool in out offering to customers,” bin Sulayem says.
“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.
“We are very excited to welcome our new colleagues as they join us on this pivotal step in our growth journey.”
No confirmed price has been disclosed, but Bloomberg has estimated a value of anywhere between $300 million and $800 million.
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