Archives



Freight News, Logistics


Kintetsu to take over NOL forwarding arm

[ February 17, 2015   //   ]

Japan-based forwarder Kintetsu World Express has agreed terms to buy APL Logistics from Singapore’s Neptune Orient Lines, for US$1.2 billion, subject to shareholder and regulatory approval. The move would allow NOL to focus on its main liner shipping businesssaid president and CEO, Ng Yat Chung. At the same time strengthen its balance sheet and unlock shareholder value.

NOL added that the divestment will allow APL Logistics to realise its full potential.

Group president and CEO of KWE, Satoshi Ishizaki, added: “We intend to retain the headquarters of APL Logistics in Singapore and to run it as a separate unit…We warmly welcome customers and employees of APL Logistics into our group. To them, I would like to give my assurance that when this transaction is completed, KWE will continue to invest in and expand APL Logistics’ services so as to serve our customers better, and to create exciting career growth opportunities for all employees of the KWE family.”

He said the move would allow APL Logistics “to expand its business with the backing of a company with strong fundamentals and a commitment to grow in the logistics space. We believe that KWE has the ability and the ambition to continue APL Logistics’ growth strategy,” continued Mr Ng.

APL Logistics was the logistics arm of US-based American President Lines – since absorbed by NOL – set up at a time when many shipping lines saw diversification into logistics as a means of boosting profitability at a time of low margins in the container transport industry. Many of these shipping line logistics arms have since been sold or abandoned, making NOL one of the few lines to persist in the value-added logistics field.

Tags: , ,