Business

Barloworld eyes global expansion

Fri, 14 Mar 2008

Baloworld Logistics has announced a major growth initiative with the acquisition of Dubai-based transportation and logistics company Swift Group and its affiliates in the Far East, India, UAE, Africa and Germany for about US$70-million (about R554-million).

"The skills, networks and clients of Swift and its affiliates will enable Barloworld Logistics to provide multimodal solutions in the global logistics arena," Barloworld Logistics CEO Paul Stuiver said in a statement this week.

"By expanding our freight management services through their networks, we will become a significant player in a supply chain network that stretches from Asian manufacturing to Western European and African consumers."

The Swift group is privately held, with well-established services between South-East Asia and Western Europe and a number of innovative freight logistics solutions specific to African markets. It has over 600 employees in its 46 offices in 20 countries, spanning the Middle East, Far East, the Indian sub-continent, and Africa.

Swift was one of the first companies to reserve space in Dubai Logistics City for a purpose-built logistics and an additional airside facility at the new World Central Airport. It also has warehouse space in the Jebel Ali Free Zone in Dubai, capable of cool, air-conditioned and dry storage.

Stuiver said there was significant growth potential, as Swift had an extensive African network that offered Barloworld Logistics the opportunity to sell additional supply chain services into these markets.

Muhannad Al Ashram, MD of Al Ashram Enterprises, Barloworld Logistics' partner in the region, pointed out that the acquisition would consolidate Barolworld's activities in Dubai, which was an important global logistics and trans-shipment hub.

"It is a milestone for Swift, the staff, management and stakeholders to be recognised as an organisation with a sound strategy and potential to grow even further as an integral part of the Barloworld group," said Swift Group chairman and founder Issa Baluch.

"I am extremely happy and excited for this organisation and I believe we have a bright future ahead in pursuit of our corporate goal to serve the world from Dubai."

The cost of acquiring the Swift group and its affiliates will be US$70-million, subject to final adjustment based on profit and other warranties to be achieved.

Barloworld Logistics is currently also finalising the acquisition of a Hong Kong-based logistics company to strengthen and expand Swift's product and service offering in that region.

SAinfo reporter