The acquisition of Shipping and Airfreight Services is part of a long-term strategy to expand coverage around the globe.
Kerry Logistics Network Ltd. said it has acquired Shipping and Airfreight Services (Pty) Ltd. (S.A.S.), a Johannesburg, South Africa-based freight forwarding and logistics company.
Financial terms of the deal were not disclosed.
S.A.S.’ freight forwarding unit offers a complete suit of ocean and airfreight services, including less-than-container-load and full-container-load services, as well as breakbulk services for ocean freight. The service portfolio for airfreight includes direct airfreight shipments, consolidation, and charter services. S.A.S. also provides customized warehousing and distribution solutions.
“South Africa’s economy has an important standing on the African continent with excellent trade lanes, not only to the Chinese market but also the large exporting economies of the European Union,” said Thomas Blank, managing director of Europe at Kerry Logistics.
South Africa is an important manufacturing hub for the global automotive market, with the automotive industry being responsible for a significant amount of South Africa’s imports and exports, Kerry Logistics explained.
Kerry Logistics said its acquisition of S.A.S. is part of its long-term international freight forwarding strategy to expand its worldwide coverage.
In mid-May, Kerry Logistics revealed that its parcel delivery subsidiary in Thailand, Kerry Express (Thailand) Ltd., entered into agreements with VGI Global Media Public Company Ltd. to dispose 23 percent of the total issued share capital of Kerry Express to VGI for a consideration of THB 5.9 billion (U.S. $183.7 million).
VGI is a subsidiary of Bangkok Mass Transit System Public Company Ltd. and is Thailand’s top offline-to-online (O2O) solutions provider.
Through this partnership, Kerry Logistics said that Kerry Express is becoming the only express logistics partner of VGI and Bangkok Mass Transit System (BTS Skytrain), adding how Kerry Express will be able to use BTS Skytrain to extend its express delivery services and expand its customer base by adding more delivery routes.
In early May, Kerry Logistics entered into a cooperation agreement with D&G Technology Holding Company Ltd., an asphalt mixing plant manufacturer and service provider in China, for the two parties to capture opportunities under the Belt and Road initiative. “Through the alliance, Kerry Logistics expects to generate significant business synergy by providing logistics services to D&G Technology in the delivery of products to customers along the Belt and Road trade routes, and enhance the development of its operations in the region,” Kerry Logistics said.
Kerry Logistics had thrived in 2017, posting a profit attributable to the shareholders of the company of HK $2.12 billion (U.S. $270.2 million) on revenues of HK $30.79 billion, up 13 percent and 28 percent year-over-year, respectively.
Kerry Logistics buys freight forwarding company
