DP World has announced it is acquiring a majority stake in Korean firm, Unico Logistics, in line with its strategy to develop from being a ports and marine services operator into an end-to-end logistics provider.
The Dubai- based global ports operator said it has agreed to acquire a 60% shareholding in UNICO Logistics and subject to regulatory clearance, it is expected to close in the fourth quarter of this year.
"The transaction 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," it said in a statement.
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.
It is a multimodal transport specialist with a 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).
End-to-end supply chain solutions provider
"The acquisition is in line with DP World's global strategy to grow as a smart supply chain solutions provider and will provide a platform to drive synergies between UNICO and DP World operations in the Asia Pacific and European regions, while also continuing the expansion of logistics capabilities within DP World's portfolio," the DP World statement said.
It noted that UNICO's expertise in handling automotive logistics is also aligned with DP World's strategic focus on this sector.
"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. These new services further strengthen our logistics capabilities, which we are combining with our maritime services operations and our worldwide network of ports and terminals," said Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World.
H.J. Park, president and CEO, UNICO Logistics Co. Ltd., said: "UNICO 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."
"Being part of DP World will allow us to develop further from the Group's deep relationship with end-customers and wide global network. We look forward to a prosperous future together," he added.