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Allcargo’s European arm buys logistics firms in HK, Singapore

The European subsidiary of Mumbai-headquartered logistics firm Allcargo Logistics, has acquired majority stakes in Hong Kong-based PAK DA (HK) Logistics and Singaporebased Spechem Supply Chain Management.

, ET Bureau|
Nov 21, 2019, 11.23 AM IST
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MUMBAI: ECU Worldwide, the European subsidiary of Mumbai-headquartered logistics firm Allcargo Logistics, has acquired majority stakes in Hong Kong-based PAK DA (HK) Logistics and Singapore-based Spechem Supply Chain Management (Asia), a senior executive said.

ECU Worldwide has acquired 75% stake in PAK DA, the person said.

ECU Worldwide confirmed acquisitions in Hong Kong and Singapore without naming the firms or specifying the quantum of stakes.

The Hong Kong acquisition will help it gain access to 50 export trade lanes and 20 import services, the company said in a statement on Wednesday. The Singapore entity provides dangerous goods warehousing capabilities, it said.

ECU Worldwide — Allcargo’s biggest revenue earner — will also be able to expand its product offering and make inroads by connecting the Asia Pacific region with Europe.

“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.

Allcargo is also in the final rounds of discussions to pick up controlling stake in Hyderabad-based express logistics company Gati, as ET has reported earlier.

Allcargo gets 88% of its revenue from its multimodal transport operations, primarily from ECU Worldwide. The rest come from container freight stations, project and engineering solutions and supply chain management.

The firm is building logistics parks in four cities across the country.

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