Global freight forwarder and logistics provider Damco has acquired Pacific Network Global Logistics (PacNet) to create a freight forwarding business with a stronger global network and better local service capability in the Asia Pacific region.
According to a media release from Damco, the group had been looking to strengthen its overall presence in Australia in the segments where PacNet was active for some time. Combining forces with PacNet was a logical step and an almost perfect fit, the media release stated.
By combining forces with PacNet, Damco would significantly enhance its platform in the North Asia and Asia Pacific regions. As a result, Damco would gain market leadership positions in retail and lifestyle sectors in Australia and further strengthen its position in airfreight from China to Australia. According to the report, PacNet and Damco customers would receive highly competitive services, increased frequencies and better access to peak capacity in the fast-growing China-Australia trade lane.
“I am happy to be joining forces with PacNet which is another good step forward to further build our global business. PacNet has a high reputation for service in Australia, in the apparel, footwear and retail sectors,” said Damco CEO Rolf Habben-Jansen.
“We are combining two businesses with very aligned strategies, complementary skills, customer bases and geographic strengths, and we have already seen that our cultures match very well, which is an excellent basis to further improve our ability to serve our joint existing and future customers even better,” he said.
The acquisition would strengthen Damco’s forwarding capabilities in Australia, Hong Kong and Mainland China, the media release stated. Customers would benefit from improved service offerings, more comprehensive solutions, new products and access to a strong and growing global network. This would help Damco’s existing customers but also PacNet’s Australian customers as they sought to expand their sourcing from China to the rest of the world.
“We have seen a growing demand for a broader outreach in recent years and we feel that by joining Damco we can provide our customers with a strong global presence,” said Paul Milborrow, CEO of PacNet.
“We will now create a leading freight forwarding business in our region with a market leading position in key industries, enabling us to better cater to the demands our customers are raising,” he added.
Damco is the logistics arm of the AP Moller-Maersk Group, with 10,800 employees worldwide and a turnover of US$2.8bn in 2011. PacNet, headquartered in Australia, has 382 employees and recorded a turnover of US$180m in the 2011 financial year.
