DSV is set to become a top three global forwarder as it continues its expansion through the planned acquisition of Agility Global Integrated Logistics (GIL) in a deal worth around $4.2bn, says release.
The purchase is expected to increase DSV’s annual revenue by around 23%, which will rank the combined company as one of the top three forwarders with revenues of around $22bn and a workforce of more than 70,000 employees.
The acquisition will be an all-share transaction and closing is expected in the third quarter of 2021.
The deal will be funded through the issue of 19.3m new shares in DSV, which will give Agility an 8% shareholding in the combined entity, making it the second largest shareholder.
DSV said that acquisitions are an integral part of its strategy and added that it has a “track record of successful integrations”.
The forwarder said that scale remains one of the key competitive advantages in freight forwarding with significant operational and commercial benefits.
“The air and sea division will be strengthened and will further cement its position as one of the largest providers globally with more than 2.8m containers (TEUs) and more than 1.6m tonnes of airfreight transported annually.
“GIL’s presence in the fast-growing emerging markets in Asia Pacific (APAC) as well as Europe and Americas will be a strong addition to DSV’s existing network.”
“Contract logistics capabilities are increasingly important due to complex supply chains and changing distribution channels.
“GIL will bring additional warehousing capacity of more than 1.4m sq m, mainly in APAC and the Middle East,and thereby significantly strengthen the solutions division.
“Finally, GIL will add road freight activities to DSV’s network in Europe and the Middle East.”
In terms of market impact, in 2020 GIL had $4bn in revenue, of which approximately 80% is related to air and ocean freight.
In 2019, DSV ranked in fifth in terms of revenues, behind Nippon Express, DB Schenker, Kuehne+Nagel and DHL Global Forwarding.
The deal will see it move above Nippon Express and DB Schenker.
It will also rank in the top three in terms of airfreight, with the purchase pushing the Copenhagen-headquartered forwarder into the top three overtaking DB Schenker and behind DHL Global Forwarding and Kuehne+Nagel.
Jens Bjørn Andersen, group chief executive of DSV, said: “Agility’s Global Integrated Logistics business and DSV are an excellent match, and we are proud that we can announce our agreement to unite.
“The combination of our two global networks will provide us with the opportunity to offer our customers an even higher service level.
“GIL’s global network, industry competencies and strong market position in APAC and the Middle East complement DSV’s network well and will support our long-term value creation ambitions.
“Our two groups of companies already share a culture of entrepreneurship and local ownership, and we look forward to welcoming GIL’s talented staff to DSV.”
Tarek Sultan, vice-chairman, Agility, added: “This deal creates significant shareholder value and marks a new milestone in Agility’s journey.
“Agility remains committed to the supply chain industry and will become the second largest shareholder in one of the fastest growing and most profitable logistics companies in the world.”
DSV said the transaction is expected to be earnings per share accretive (diluted and adjusted) in year two after completion of the transaction.
It is DSV’s aspiration to lift the operating margin of the combined entity to DSV’s existing levels within the respective business areas.
DSV is not the only large forwarder looking to expand through acquisitions this year. In February Kuehne+Nagel announced plans to purchase Apex International as it looks to expand its presence in the Asia Pacific market.
The deal, when completed, will make Kuehne+Nagel the world’s largest airfreight forwarder.
Chief executive of consultancy Transport Intelligence, John Manners-Bell, said the deal reflected ongoing consolidation in the forwarding market.
“Further consolidation in the freight forwarding market is hardly unexpected and the purchase of Agility Integrated Logistics by DSV Panalpina must be put in the context of two decades of intense acquisition activity,” he said.
“Agility itself has been made up of over 40 deals as forwarders pursue strategies that allow them to build strength and depth on a worldwide basis, not least giving them buying power over shipping and airlines.
“Although acquisitions are never straightforward, DSV’s management has shown time and again that they have discovered the formula to integrate and even turn around the most challenged of companies. I expect the same in this case, as DSV becomes an even bigger rival to DHL Global Forwarding and Kuehne + Nagel on many key trade routes and sectors.”Share this story
The Federation of Freight Forwarders’ Associations in India (FFFAI) held its 6th EC Meeting for the term 2021-23 on May 27 and 28 in Bengaluru. The meeting was attended by the Office Bearers and 28 Member Association representative of FFFAI from across the country, there were many issues discussed and updates provided concerning customs, CBLR, EDI, Service Tax/GST, logistics, air cargo, sea cargo, skill development,importance of social media which FFFAI has expanded recently, technology developments, etc. The special focus of the 6th EC meeting was the updates on forthcoming 24th Biennial Convention of FFFAI to be held from August 12 to 14, 2022 in Chennai with the theme LOGISTICS RESHAPE, EMBRACE AND SURGE IN THE DIGITAL ERA. At this EC meeting, FFFAI also implemented Digital Learning platform for members and next generation for e-learning. It has been decided that FFFAI would initiate FIATA eFBL here in India to benefit the trade, which empowers customs brokers, freight forwarders and logistics service providers. In addition, updates on the recently held FIATA HQ Meet was also provided by the concerned members of FFFAI. FFFAI members present at this EC meeting stressed upon enhancing productivity on ICEGATE for trade facilitation and Ease of Doing Business. The FFFAI members also urged for creating a dedicated portal for LSP integration. As regard to skill development initiatives, IIFF’s (training arm of FFFAI) past and forthcoming training programmes (both online and classroom/physical) for the entire logistics industry were presented at the EC meeting. In addition, FFFAI’s various initiatives on capacity building through technology/IT also discussed withadequate importance. Recent activities of FFFAI Women’s Wing including organising interactive meetings with Government of India officials and industry experts were highlighted at this meeting which drew huge appreciation from the members. The members committed to expand the activities of the Women’s Wing in all the 28 member association locations to empower/encourage the women logistics practitioners. At this EC meeting FFFAI has signed an MoU with the National Institute of Industrial Engineering (NITIE) with an objective of skilling the aspiring candidates looking for opportunities in the logistics sector. Notably, a special session was organised at this 6th EC Meeting where N Sivasailam, former Special Secretary (Logistics), Ministry of Commerce, Government of India was present to address the FFFAI members and highlight the recent initiatives of the government in strengthening the logistics infrastructure, thereby leading in increase of international trade through multimodal connectivity and faster cargo clearance. He projected the ambitious growth potential of the logistics industry in India with a strong collaboration between government and industry people. Also speaking on the occasion was Bani Bhattacharya, IRS, who interacted with members of FFFAI on various initiatives of CBIC for the trade facilitation without human intervention. FFFAI Chairman Shankar Shinde thanked all the 28 associations for their support and appreciated the contribution of CBIC/DG systems trade facilitation measures. FFFAI Member Associations are: 1. Ahmedabad Custom Brokers' Association2. Aurangabad Customs House Agents Association3. Association of Custom House Agents Thiruvanthapuram4. Bangalore Custom House Agents Association5. Brihnamumbai Custom Brokers Association6. Calcutta Customs House Agents Association7. Chennai Customs House Agents Association8. Cochin Customs Brokers' Association9. Coimbatore Customs House and Steamer Agents Association10. Custom Brokers Association Hyderabad11. Delhi Customs Brokers Association12. Goa Custom Brokers Association13.Indore Customs House Agents Association14. The Kakinada Customs Brokers Association15. Kandla Custom Brokers Association16. Kanpur Customs Brokers Association17. Ludhiana Customs House Agents Association18. Mangalore Customs House Agents Association19. Mundra Customs Brokers Association20. Nagpur Customs House Agents Association21. Nashik Customs House Agents Association22. Nadia Custom Brokers Association23. Pipavav Custom Brokers Association24. Pune Customs House Agents Association25. Rajasthan Customs House Agents Association26.Tuticorin Custom Brokers Association27.Visakhapatnam Cusotms Brokers' Association28.West Bengal Custom House Agents Society FFFAI welcomes Women in Logistics/Youth in Logistics to participate on FFFAI forums and also invites membership application form logistics service providers in industry as this is a big national and international forum to network.
Ecom Express Limited, India’s sole pure-play B2C e-commerce logistics provider as of the Financial Year 2024, has introduced a new brand identity, underscoring its commitment to customer-centricity. This rebranding reflects a focus on addressing specific customer needs, prioritising customer-facing metrics, and integrating innovative technology across its nationwide express logistics network. The goal is to enhance speed, agility, and network reach, ensuring a customer-focused approach. The rebranding includes a dynamic logo and a refreshed visual identity, symbolising Ecom Express’s pursuit of excellence. The new logo features a forward-moving arrow within a square, representing the company’s dedication to delivery. The letter "E" in the logo stands for Expression, Innovation, and Progress, while the bold magenta colour signifies bravery, self-expression, and strength. This vibrant magenta reintroduction reflects Ecom Express's renewed commitment to customers, partners, and team members, as the company aims to simplify and democratise logistics for all. Ajay Chitkara, CEO and MD of Ecom Express, elaborated on the transformation, stating, “Our refreshed brand identity reaffirms our customer-first approach as we continue to integrate technology and innovation to provide reliable, high-speed services with the widest network reach. This transformation also underscores our commitment to our employees and delivery partners, who are essential to our business.” The new logo embodies Ecom Express’s dedication to its core values, focusing on customer welfare and fostering a diverse, inclusive environment. This rebranding signifies a promise to redefine logistics through advanced technology, making life easier for all types of customers.
ESR India, the largest APAC focused industrial and logistics real estate platform, has inked a Memorandum of Understanding (MoU) with the Government of Tamil Nadu for a potential investment of INR 550 crores. The MOU is signed for the launch of two industrial parks in Kancheepuram and Krishnagiri districts of the state over the next five years. Once fully operational, the two projects have the potential to create over 4,400 jobs in the facility, that shall boost the overall socio-economic growth in the region. The MoU was signed at the Investment Conclave 2021 conference held today. It will facilitate ESR India’s proposed investment at Kancheepuram and Krishnagiri industrial parks by helping in streamlining land acquisition, approvals, clearances, and administrative processes as per existing policies, rules, and regulations of the Government of Tamil Nadu. The policy and regulatory reforms unveiled in recent times has accentuated the entry of international institutional players and has set new benchmarks for industrial developments in the country. Commenting on the development, Abhijit Malkani, CEO and Country Head, ESR India said, “We are delighted to announce our affiliation with the state government. The Government of Tamil Nadu has been very supportive in encouraging industrial developments in the state by creating a favourable business climate for industrial players. The MoU will see ESR invest INR 550 crores to develop industrial parks in Tamil Nadu, offering 1,800 direct and 2,600 indirect job opportunities in the facility.” “Our goals are aligned with the vision of the Tamil Nadu government, to create avenues to increase business and trade inclusion opportunities and employment towards garnering better economic growth in the region,” he further stated. ESR India is currently present across 9 cities and 15 locations with a total GFA of 18 mn sq ft. These state-of-the-art facilities will be developed upholding the best practices for ESG and sustainability.
Singapore’s Changi Airport is sharpening its focus on pharmaceuticals and e-commerce shipments to navigate constrained cargo capacity until planned expansion in the 2030s. According to Lim Ching Kiat, Executive Vice President of Air Hub and Cargo Development at Changi Airport Group, current facilities face mounting pressure due to growing regional demand, necessitating strategic tenant and cargo type management. E-commerce continues to be a key growth driver for air cargo globally, fueled by major players like Shein, Temu, and TikTok Shop. At the same time, Singapore is solidifying its position as Southeast Asia’s preferred pharmaceutical hub, attracting investments from global biopharma giants such as Thermo Fisher, Sanofi, BioNTech, and MSD. Looking ahead, Changi Airport plans to launch a second logistics park by the 2030s, aiming to increase its annual cargo capacity from 3 million tons to 5.4 million tons. The new free trade zone will further expedite cargo handling and redistribution. In 2024, Changi Airport reported handling 1.99 million tons of airfreight, a 14.6% rise from 2023, driven by robust cross-border e-commerce demand, improved trade routes with China and the U.S., and recovering electronics exports. Top air cargo markets included China, Australia, the U.S., Hong Kong, and India.
The Uttar Pradesh government is set to develop a multi-modal logistics hub (MMLH) in Greater Noida’s Dadri, investing Rs 7,064 crore to support its $1 trillion economy goal. This hub will cover 823 acres, with a core development area spanning 455 acres. Key developments include commercial and administrative facilities over 17.5 acres, a rail yard, and other projects across 350 acres. Under Chief Minister Yogi Adityanath’s directives, a detailed action plan has been designed to expedite these initiatives. The Dadri MMLH aims to become a world-class freight handling facility, functioning as a dry port to ensure the swift transit of goods and raw materials. This project is poised to be India's largest logistics hub. Located on the eastern and western dedicated freight corridors, it will serve as a central hub for container handling, warehousing, cold storage, processing, de-stuffing, stuffing, and value-added packing. Providing seamless rail connectivity, the hub will feature rail platforms, customs clearance facilities, cargo segregation areas, truck parking zones, and extensive green spaces. The project is being developed under the Public-Private Partnership (PPP) model, supervised by the Greater Noida Industrial Development Authority and adhering to the guidelines of the National Industrial Corridor Development and Implementation Trust (NICDIT). The Greater Noida Industrial Development Authority has prepared the Master Detailed Project Report (DPR) for constructing the approach track and Rail Over Rail (ROR) bridge from New Dadri station to the MMLH boundary. The Dedicated Freight Corridor Corporation of India (DFCCIL) has approved the DPR for railway tracks and terminal stations within the MMLH. Additionally, the tender documentation for land acquisition and signaling processes for the approach track has been finalized. Concurrently, the development of trunk infrastructure, including boundary work, roads, canals, bridges, utility relocation, and water and power supply, is progressing through various phases.
trackNOW, a leading Gujarat-based women-led fleet management and advanced telematic tracking solution company has recently raised an extended seed fund of an undisclosed amount. The funding round was led by Yohan Poonawalla, Chairman of the Poonawalla Engineering Group, and Michelle Poonawalla, Managing Director of the Poonawalla Engineering Companies. The company had previously secured seed funding in FY24, led by GI Ventures and BluSmart co-founder Anmol Jaggi, which successfully led the company to accelerate its business growth plans. The latest investment from the Poonawalla Group will enable trackNOW to expand its R&D and boost operational efficiency, which will further solidify its position in the Indian logistics market. Founded in 2016 by Pooja Khemka and Suyash Khemka, trackNOW has emerged as a leader in delivering cutting-edge solutions to streamline fleet management and tracking processes. Known for its focus on minimising turnaround times and reducing operational costs across various industries, trackNOW has garnered immense recognition for its intelligent, technology-driven innovations. “Investing in promising startups like trackNOW is not just about financial returns,” said Yohan Poonawalla, Chairman of Poonawalla Engineering Group. “It’s about mentoring and empowering young, visionary entrepreneurs by providing them with the resources and support needed to succeed. We believe in the transformative power of innovation and are committed to fostering an environment where groundbreaking ideas can flourish.” Michelle Poonawalla, Managing Director of the Poonawalla Engineering Companies, added, “We are thrilled to partner with trackNOW and support their growth journey. This investment reflects our commitment to empowering Indian entrepreneurs. The partnership has the potential to unlock significant value for both trackNOW and the broader Indian economy by driving job creation, enhancing operational efficiencies across sectors, and strengthening India's position in the global logistics market.” Commenting on the investment, Pooja S. Khemka, Co-founder, trackNOW said, “The investment from the Poonawalla Group is a significant endorsement of our vision and a testament to the hard work and dedication of our team. We are honored to receive the support of such a respected group. This partnership will not only provide us with the capital required to scale operations but also invaluable mentorship and industry expertise.”
Shadowfax, a leading player in India’s logistics sector, has acquired CriticaLog, a specialised firm delivering critical logistics solutions, for an undisclosed amount. This strategic acquisition aims to bolster Shadowfax’s capabilities by offering comprehensive and customisable delivery services for high-value items such as electronics, automobile spares, jewelry, and pharmaceuticals. With over 400 clients, including multinational corporations, CriticaLog's expertise will integrate into Shadowfax’s expansive network that covers 2,500 cities and 18,000 pin codes across India. This merger is poised to enhance Shadowfax’s sector-wide reach by blending bespoke logistics solutions with its existing offerings. Shadowfax’s services already include quality check-based reverse logistics, same-day delivery under its "Prime" initiative, quick commerce 10-minute delivery, and hand-to-hand doorstep exchanges. The company recorded significant growth last fiscal year, with operational revenue rising to ₹1,884.8 crore from ₹1,415 crore in FY23, as per data intelligence platform TheKredible. By uniting its expansive infrastructure with CriticaLog’s high-value delivery expertise, Shadowfax aims to set new benchmarks in the logistics industry while meeting the nuanced demands of both e-commerce and D2C clients.
A workshop on “Vision and Investment Potential in the Port System, Maritime Transport, and Logistics in India” was hosted in collaboration with Vietnam National Shipping Lines (VIMC) and the Vietnamese Embassy in India. The event highlighted opportunities for VIMC to expand its market share in India while fostering stronger economic ties between the two nations. With India’s foreign trade turnover at $776 billion in 2023 and projected to reach $2,000 billion by 2030, the logistics sector presents significant growth potential. VIMC sees this as a chance to create efficient supply chains, connecting Vietnam directly to India’s 1.4 billion consumers. Le Quang Trung, VIMC’s Deputy General Director, emphasised the organisation's vision to build a comprehensive logistics ecosystem by strengthening maritime routes and investing in port infrastructure with Indian partners. VIMC aims to enhance trade between the countries by developing new shipping routes and establishing “Vietnam House” logistics facilities in India to offer integrated storage, delivery, and freight transport services. The workshop also revisited VIMC’s direct container lines connecting Cua Lo, Kolkata, and Hai Phong in 2021-2022, which reduced transit times and stabilised supply chains. With a target of $20 billion in bilateral trade, the collaboration marks a step toward achieving long-term maritime and logistics synergies.
