DP World, the Arab multinational known for its development and management of port container terminals, is strengthening its third-party logistics services. On September 2, 2024, the company announced a significant acquisition in Hong Kong: Cargo Services Far East, a logistics provider specializing in the Fashion and Retail sectors. With this acquisition, DP World’s workforce will exceed 115,000 employees, spread across more than 800 locations worldwide. By the end of the year, the company will manage over 200 shipping offices, covering up to 95% of global trade flows.
Cargo Services, founded in 1989, was among the first foreign logistics providers to enter the Chinese market, gradually becoming an industry leader. The company employs over 2,500 people and operates in various regions across the globe, including Asia, Europe, South Africa, and the United States. With a broad range of solutions, including purchase order management, sea and air transportation, and warehousing, Cargo Services has built a robust service portfolio for various sectors, including high-end Fashion, Retail, and even cruise logistics.
"Cargo Services' logistics expertise and global network perfectly complement our international presence and add another powerful tool to our customer offerings,” said Sultan Ahmed bin Sulayem, Chairman and CEO of DP World. “Together, we will create a formidable force driving global trade. By combining our strengths—technology, a growing logistics portfolio, and strategic infrastructure—with Cargo Services' expertise and network, we will be able to deliver unparalleled value to customers looking to strengthen existing trade links or enter new markets.”
The acquisition process has been officially completed, and the full integration of the two companies is expected in the coming months. The combined resources will be deployed to ensure a smooth transition process, with a focus on operational continuity and customer satisfaction. To ensure a seamless transition, John Lau, CEO of Cargo Services, will remain with the company, taking on a senior leadership role within DP World.
DP World is also boosting its chemical logistics operations, a sector it operates in through its subsidiary Legend Logistics, a global logistics company headquartered in Singapore. The expansion of services in this area aims to meet the needs of an international chemical industry valued at $4.2 trillion. The Arab company anticipates approximately $1 trillion growth in the chemical sector over the next decade, and its investment in logistics for this sector is targeted to support this expansion.
