ECU Worldwide Invests in Stakes at Hong Kong and Singapore Logistics Firm
BY Tiya Chatterji 23.Nov.2019
ECU Worldwide, a wholly-owned European auxiliary of Allcargo Logistics has acquired controlling stakes in Hong Kong based PAK DA (HK) Logistics Ltd and Singapore-based Spechem Supply Chain Management (Asia) Pte Ltd for an undisclosed amount, a top company executive said.
“These acquisitions are key to ECU Worldwide gaining strategic leverage and expanding its LCL (less than container load, a mode of shipping where a container may carry multiple shipments) outreach in the Asia-Pacific region,” Shashi Kiran Shetty, chairman at ECU Worldwide and Allcargo, said.
The Hong Kong acquisition will help the company gain access to 50 export trade lanes and 20 import services, the company said in a statement. The Singapore entity provides dangerous goods warehousing capabilities, which serves as an additional benefit. Together the companies aim at expansion in vital trade routes.
ECU Worldwide is Allcargo’s biggest revenue generator and will also be able to expand its product offering and make inroads by connecting the Asia Pacific region with Europe.
Allcargo gets 88% of its revenue from its multimodal transport operations, primarily from ECU Worldwide. The rest is received through container freight stations, project and engineering solutions and supply chain management.
“With these additions to the ECU Worldwide portfolio, our position has become stronger in one of our strategic markets. These acquisitions continue to be in line with our vision of becoming a global leader in the LCL business and be known for pioneering solutions in logistics worldwide,” Shetty added.