DP World to acquire 60% of Korea's Unico Logistics

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Published: Mon 27 Jul 2020, 7:16 PM

Last updated: Mon 27 Jul 2020, 9:26 PM

DP World has agreed to acquire a 60 per cent stake in South Korea-based Unico Logistics Company, DP World said.
In a statement on Monday, the Dubai-based global ports operator said the transaction, subject to regulatory clearance, is expected to close in the fourth quarter of this year.
The strategic move represents another strategic step in DP World's vision to build an integrated suite of service offerings that will connect directly with end-customers and beneficial cargo owners to remove inefficiencies in the supply chain and accelerate trade growth.
Established in 2002 by H.J. Park and headquartered in South Korea, Unico has a global footprint of 25 subsidiaries in 20 countries and is one of the largest independent NVOCC (Non-Vessel Operating Common Carrier) in South Korea.
Unico is a multimodal transport specialist with strong market position in the fast-growing transcontinental rail freight market between East-Asia and Central-Asia and Russia, in particular on the strategically important Trans-Siberian Railway (TSR) and Trans China Railway (TCR).
"DP World's vision is to become the leading end-to-end supply chain solutions provider. By integrating Unico into our worldwide network we will be able to offer better service to our customers in South Korea and beyond," Sultan Ahmed bin Sulayem, group chairman and CEO, DP World, said.
H.J. Park, president and CEO, Unico Logistics Co, said his company has delivered significant growth over the years and "we are proud of our success but we believe this partnership with DP World will allow us" to take the business to the next stage of its growth.
Shailesh Dash, a Dubai-based entrepreneur and financier, said Dubai is not only eyeing to be the link between Asia, Europe and Africa but is also taking the right steps to serve South America.
"The latest acquisition will help DP World to execute its global strategy to grow as a smart supply chain solutions provider," said Dash, who is also chairman of Gulf Pinnacle Logistics.
Outlook uncertain
Meanwhile, DP World recorded a fall of 8.8 per cent in second quarter container volumes, warning on Monday the outlook remained uncertain. The state-owned company, which also operates logistics facilities, handled 16.7 million shipping containers in the second quarter, down from 18.3 million a year earlier.
It recorded its biggest quarterly decline in the Asia Pacific and Indian subcontinent region, where volumes fell 12.2 per cent to 7.2 million containers.
"Overall, we are encouraged that our business has performed better than expected and, while the outlook is still uncertain, we remain positive on the medium- to long-term fundamentals of the industry," Bin Sulayem said.
Volumes handled in the first six months of the year were down 5.3 per cent at 33.8 million containers, DP World said.
- With inputs from Reuters

By Muzaffar Rizvi

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