As part of its development strategy, CEVA Logistics announced on July 30 that it has signed an agreement to acquire 100% of the shares of Cargex S.A., an international freight forwarding and perishable goods expert based in Bogotá, Colombia.
At closing of the acquisition, CEVA would also take complete control of the Cargex customs brokerage affiliate, Agencias de Aduanas Aduanamos S.A. Nivel 2.
In a statement, the Switzerland-headquartered global logistics and supply chain company said Cargex, is an expert in the handling of perishable products.
"Cargex has more than 25 years of experience, with a primary focus in export management of perishable goods. It has operations in Bogotá, Medellin, Cartagena, Buenaventura and Santa Marta," CEVA said, adding that over the years, Cargex and Aduanamos have become leaders in the handling of perishable products.
With this acquisition, CEVA Logistics noted that it will become a leading player in the perishables market in Colombia.
Cargex General Manager Pablo Torres will join CEVA Logistics as director of perishables for Colombia and Ecuador.
CEVA Logistics noted that it is directly present in 10 countries in Latin America, where the company has nearly 10,000 employees across 40 locations.
Already operating in Colombia and Ecuador, CEVA said it will maintain its current Colombian presence in Bogotá, Medellin, Cali, Buenaventura, Cartagena, Ipiales and Santa Marta, as well as its offices in Guayaquil and Quito in Ecuador.
Growth in perishables cargo expected
"CEVA expects the perishables market in Latin America to rise annually by 10% through 2024. Air freight will play a key role as the company expands in that growing perishables market, and the expanding CEVA SKYCAPACITY program will play a critical role in connecting Latin America to international markets," the logistics firm said.
"With a current product focus on fruits, vegetables, flowers, fish and other proteins, CEVA plans to be a strong perishables market player in the Latin American region through targets to grow more than 50% in all of its current country markets," it added.
CEVA Logistics noted that it remains committed to a "think global, act local" growth strategy and that Cargex supports CEVA’s global end-to-end logistics capabilities.
"CEVA continues to act as part of its global strategic growth plan, and the Cargex transaction strengthens the position of the company in Latin America, with particular focus on the growing perishable market segment," the firm added.
Mathieu Friedberg, chief executive officer, CEVA Logistics, said with the addition of Cargex, CEVA Logistics continues its strategic push to capitalize on growing global and regional market segments.
"This acquisition is the perfect follow-on to our M&A activity in Africa over the past 12 months. With our global scale, we are able to see geographic and industry market segments primed for growth, and our experienced local teams are then able to seamlessly deliver the responsive logistics solutions that our customers have come to expect from us," Friedberg added.
Nadia Ribeiro, managing director for Latin America, CEVA Logistics said: "Our strength in the perishables market continues to grow. Our position in Peru and Chile, and most recently in Brazil, reflects our successful strategy to create reliable local lines of business and lasting relationships with airline partners, as well as to leverage cross-selling opportunities in ocean freight in refrigerated containers."
Pablo Torres, general manager for Cargex S.A and Aduanamos S.A, said: "[We have] always believed that working toward meeting the customer’s needs and focusing on long-term relationships are the key drivers of our business. We are happy to announce the signing of this venture with CEVA Logistics as the next step to follow in order to give to our partners and friends an expanded logistics capability that will assure our personalized service, but with a worldwide, solid infrastructure that will have a positive impact to the operation of our partners and colleagues.”