DP World buys Hong Kong’s Cargo Services logistics firm

DUBAI: Dubai-based DP World has completed the acquisition of Hong Kong-headquartered Cargo Services Far East Ltd to expand into retail and fashion logistics and grow its airfreight business.

Founded in 1989, Cargo Services Far East Ltd has cultivated a robust reputation for its comprehensive logistics solutions across diverse sectors.  

The integration of Cargo Services into DP World’s operations is anticipated to yield significant synergies, enhancing the overall value proposition offered to customers.

Sultan Ahmed bin Sulayem, the group chairman and chief executive of DP World, aptly articulated the strategic rationale behind this acquisition, highlighting the complementary nature of Cargo Services’ logistics expertise and global network with DP World’s existing infrastructure.

By merging these capabilities, DP World is poised to create a formidable force that propels trade on a global scale.

The strategic combination of advanced technology, a growing logistics portfolio, and a well-established infrastructure will enable the company to offer unparalleled services to clients seeking to fortify existing trade relationships or venture into new markets.

John Lau, the group managing director of Cargo Services, will remain with the organisation, assuming a senior leadership role within DP World.

The continuity of leadership is crucial as it not only facilitates a seamless transition but also ensures that the wealth of knowledge and experience resident within Cargo Services is retained and leveraged effectively.

Lau’s confidence in the collaborative potential of the two entities underscores the shared vision and strategic alignment that will characterize their integration. His assertion that the combined teams will work together seamlessly reflects a commitment to maintaining the high standards of freight-forwarding and logistics services that clients have come to expect.

As DP World embarks on this pivotal growth journey, the scale of its operations continues to expand. With more than 115,000 employees and over 800 locations worldwide, DP World’s logistics capabilities are set to cover a staggering 95 per cent of global trade flows by the end of the year, with the establishment of more than 200 freight forwarding offices.

The launch of DP World’s first air cargo logistics hub in Punta Cana, Dominican Republic, further exemplifies the organisation’s strategic commitment to expanding its air freight business. This facility is expected to play a crucial role in improving air cargo connectivity, enabling clients to benefit from expedited service offerings tailored to their logistical needs.

By expanding its air freight capabilities, DP World is not only responding to the increasing demand for fast and reliable cargo solutions but also reinforcing its position as a comprehensive logistics provider with a diverse range of services.