Dubai’s DP World buys Hong Kong-based logistics company
Dubai-based global port operator DPW has reached another strategic milestone through acquiring the Hong Kong-based Cargo Services Far East Ltd as a part of the broader strategy to reinforce its presence and expand its operational footprint within China. The latest acquisition by DPW forms part of its ongoing effort at better equipping its logistics capability and reaching wider markets across the fast-growing Asian region.
PC: Air Cargo News
Cargo Services Far East Ltd: A Key Acquisition
Cargo Services Far East is a Hong Kong tycoon and is part of John Lau, who operates in a diversified range of logistics activities. The services that the company provides include ocean freight, air freight, and warehousing for several industries. The group has been able to establish its brand reputation in providing quality logistical solutions, mainly in retail and high-fashion clients. Some of the primary markets where Cargo Services Far East operates include the US, UK, Europe, South Africa, Australia, and New Zealand. Based on this, DP World would expand the services provided by the company following its acquisition. Additionally, the DP Global Logistics Network would be significantly enhanced after the acquisition as a high-earning player in the global logistics and port operation sector.
Acquisition Valuation and Strategic Importance
Financial terms of the acquisition were not disclosed, although last year, a Bloomberg report had indicated that the deal may value Cargo Services Far East Ltd. at almost US$800 million. The major acquisition is the latest indication of how DP World is committed to expanding in some of the most critical global markets. The acquisition also highlights DP World’s strategic focus on the development and utilization of key assets in facilitating and driving international trade. With this acquisition of Cargo Services Far East, DP World is gearing itself toward the increasing demand for logistics and supply chain solutions, especially in Asia, which still remains a vital link in international trade.
DP World Existing Presence and Expansion in Asia
DP World is already well and truly present across Asia-not only in the joint venture with the Goodman Group, which included an ownership interest in an multi-storey logistics center in Hong Kong, further illustrating its commitment to the region. In 2022, DP World deepened its presence on the Chinese mainland with a logistics and trade development agreement with the Shanghai Lin-Gang Economic Development Group. This partnership sealed DP World’s intentions to be an intrinsic part of the Chinese market. In that light, the recent acquisition of Cargo Services Far East is looked upon as being part of the natural follow-through of DP World’s sustained expansion policy in the region. This would mean consolidating its position, with further increases in influence within Asian logistics and trade sectors.
