6 May 2024 (Lloyd's List) - DP WORLD has acquired Savan Logistics, the operator of Laotian Savannakhet dry port, located on a key economic corridor linking five Southeast Asian countries: Laos, Cambodia, Myanmar, Thailand, and Vietnam.
Situated at the west end of the 1,450km-long East-West Economic Corridor, the dry port is essential for connecting supply chains for key regional cargo owners and logistics companies, DP World said in a statement.
The acquisition reinforces its commitment to driving trade in and for Asia Pacific by expanding its presence in strategic locations, the Dubai-based giant added.
It follows the company's plans last month to increase the capacity of Malaysia's Sapangar Bay Container Port from the current 500,000 teu to 1.25m teu by 2025, and the opening of Tanza Barge Terminal in Cavite, Philippines via collaboration with partners to streamline goods transport.
As the first dry port in the country, Savannakhet spans 140,456 sqm and features 23,000 sqm of warehousing facilities, including an 11,000 sqm bonded area. DP World will also manage cross-border transport, freight forwarding, and provide integrated logistics solutions.
"This is an important move for us to boost the connectivity of the region. The dry port is strategically located close to our existing portfolio of ports, terminals, and landside facilities along the East-West Economic Corridor, in Thailand and Vietnam," said Glen Hilton, chief executive and managing director of DP World Asia Pacific.
The company has been actively pursuing expansion in the Asia Pacific region to capitalise on the opportunities arising from the global supply chain diversification and the region's robust economic growth outlook.
A recent survey led by Economist Impact and supported by DP World showed 36% of the global business leaders responded are prioritising friendshoring, while 32% are establishing parallel supply chains to diversify away from China, amid trade tensions with the US.
More executives in Asia are doing so, which benefits countries such as Indonesia, Malaysia, Vietnam, and Thailand.
As a result, the research predicted that Asia's imports and exports will grow by more than 5% in 2024, while the world trade growth is projected to be only 2.6%, according to the World Trade Organization's forecast.
