DP World is taking strides ahead with its planned end-to-end logistics offering, with increased expectations for efficient and reliable cargo transport amid the lingering impacts of the pandemic and current global economic instability and geopolitical uncertainties.
Glen Hilton, CEO and managing director for Asia-Pacific (APAC) at DP World, said with its existing global network of ports and terminals, a key focus for the company is to create “stronger, more efficient and more sustainable end-to-end supply chain solutions that are fit for the future.”
Global trade has evolved, he said, complicated by challenges wrought by the pandemic, geopolitics and economic instability. Customers are expecting more from their providers.
“To that end, we are broadening our vision of uniting our global infrastructure with local expertise while minimizing disruptions from the factory floor to the customer’s door,” he told Asia Cargo News, noting that this mindset of thinking ahead, anticipating change and deploying innovation and intelligent technology is at the heart of DP World’s transition and strategy to become an end-to-end logistics company.
Across the company’s businesses, DP World has already expanded to provide solutions for every part of the supply chain, investing more than US$10 billion in the logistics sector between 2012 and 2023. Hilton said the company has done this through “organic growth, strategic investments and acquisitions.”
He added that in the last three years alone, DP World had grown its logistics business through acquisitions, which have been critical in building its end-to-end trade solutions offering across various parts of the globe.
According to Hilton, in 2020, DP World acquired a majority stake in South Korean multimodal transport specialist UNICO Logistics and its fast-growing transcontinental rail freight market between East Asia, Central Asia and Russia is aligned with DP World’s strategy to bolster its logistics capabilities and expand within APAC and Europe.
In 2021, DP World also acquired 100% of Syncreon, a U.S.-based global logistics provider specializing in designing and operating complex supply chains for the automotive and technology industries to augment DP World’s logistics solutions capability.
In 2022, DP World acquired a 100% stake in Imperial Logistics, enabling the company to tap into Imperial’s significant presence in Africa, a market where DP World expects trade to grow.
“We are also assessing our capabilities to see where new acquisitions could complement and grow our business to remain the leading trade enabler in the region and globally,” Hilton told Asia Cargo News.
“Here in Asia-Pacific, the world’s biggest market for outsourced logistics, we see immense opportunity to build, develop and integrate logistics,” he said, noting that with 200 million TEUs moving in and out of APAC, trade within the region alone represents 20% of global trade.
“As we seek to grow our footprint in our core ports and terminals business, we will also significantly enhance our capabilities in landside logistics, warehousing, freight forwarding, industrial parks and other functions within the full supply chain,” added Hilton.
With its continued focus on providing its customers with end-to-end global supply chain solutions, DP World is “always seeking to grow its business and service new markets.”
“Throughout Asia-Pacific, we are developing our freight forwarding capability and facilitating greater integration with industrial parks and inland logistics terminals, all while continuing to innovate and enhance our ports and terminal operations,” said Hilton.
Despite the effects of the Covid-19 pandemic in the past years, DP World has also continued to progress on its strategy of connecting the supply chain in the APAC region.
In 2022, the AI-powered CARGOES AVA+ automated gate system was installed in the Batangas Container Terminal (BICT) in the Philippines for a new service linking Western Australia with trade partners in Southeast Asia. In March 2023, DP World opened Reefer World, a one-stop refrigerated container facility in Sydney.
At that same time, DP World announced that its BOXBAY automated high-bay storage system would be used commercially for the first time in DP World’s PNC terminal in Busan, South Korea, which would boost operational efficiency and improve overall truck servicing time by 20%.
“In 2021, we made Singapore our regional headquarters for the APAC region – and it plays a pivotal role in this growth trajectory. Its location at the crossroads of major shipping routes, world-class infrastructure, efficient customs procedures and business-friendly environment make it an ideal gateway for trade between Asia, Europe and the Americas,” said Hilton.
“By leveraging Singapore’s robust logistics ecosystem and extensive connectivity, we can seamlessly connect supply chains, facilitate trade and provide our customers with unrivalled access to emerging markets in the region,” he added, noting that major companies have also made Singapore their regional headquarter and supply chain hub.
Moving forward, Hilton said more players in the supply chain could also opt to offer end-to-end logistics solutions.
“Within the wider supply chain industry, we see other players consolidating and harmonizing their logistics operations horizontally to expand offerings and operate more efficiently,” he told Asia Cargo News.
“We project much of this consolidation to happen in Asia, which is expected to contribute to half of global trade by 2030.”
According to Hilton, becoming an end-to-end logistics services provider enables agility and resilience.
This trend was “thrown into sharp relief” by the pandemic at the start of 2021 when several key industry players announced mergers and acquisitions to remain competitive against supply chain disruptions and other challenges brought on by Covid.
By expanding services to offer end-to-end logistics, industry players can benefit from greater operational efficiency, a diversified portfolio and cost savings.
With DP World, the advantage that its customers benefit from a single point of contact to bring their goods from the factory floor to the customer door is the assurance that every point of the supply chain provides “seamless connections from end to end.”
“Our connected supply chain solutions are enhanced by our use of innovative technology both for cargo visibility and transparency and preempting logistics bottlenecks and supply chain constraints,” he said, noting that for DP World, every business pillar, industry sector and the geographic region has its own role to play.
He added: “We think of trade as a continuum. Our long-term intent is to be the go-to smart logistics company for any company that wants to move their goods anywhere from the factory floor to customer door.”
By Charlee Delavin
Asia Cargo News | Hong Kong
