Dubai’s port and logistics operator DP World wants to transport China’s products to the world, leveraging its recent acquisition of Cargo Services Far East in Hong Kong.
The United Arab Emirates company is bullish on the manufacturing and trading prowess of the world’s second-largest economy, and has boosted its capabilities in Hong Kong to take advantage of the significant growth opportunities, according to chairman and CEO Sultan Ahmed Bin Sulayem.
“We want to tap the China market more,” Bin Sulayem said in an interview in Hong Kong. “In the past, we used Dubai and now, we believe we can add value here, where we connect Chinese products to Africa, to surrounding countries.”
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
Last month, DP World completed the acquisition of Cargo Services Far East from Hong Kong tycoon John Lau. The supply chain provider will provide DP World with expertise to cater to customers in the retail and high-end fashion sectors, and deepen access to the Chinese market, Bin Sulayem said.
“China today is the factory of the world,” he said. “[The acquisition] complements us in China, giving us better access to logistics and connecting our customers to other regions.”
Founded in 1989 by Lau, Cargo Services Far East’s businesses include ocean and air-freight shipping, food and cold-chain logistics, and fashion logistics, according to its website. It has offices in China, the UK, the US, South Africa, India and Singapore. Lau is also the chairman and executive director of Hong Kong-listed CN Logistics International.
DP World operates the London Gateway shipping container port in Stanford-le-Hope, UK. Photo: Bloomberg alt=DP World operates the London Gateway shipping container port in Stanford-le-Hope, UK. Photo: Bloomberg>
With the acquisition of Cargo Services Far East, DP World is eager to add more services for its customers. “The expertise of Cargo Services is going to complement us on fashion and many other products, for which they have the customers and the ability. These will allow me to bring more business,” Bin Sulayem said.
One of the business connections will be with Africa, where the company plans to invest US$3 billion over the next three to five years on new port and logistics infrastructure. Africa along with the Middle East and Europe contributed US$6.59 billion, or more than 70 per cent of DP World’s revenue in the first half of this year.
DP World, which has a presence in more than 800 locations globally, said it plans to operate more than 200 freight forwarding offices by the end of the year, covering up to 95 per cent of global trade flows. It operates Container Terminal 3 in Hong Kong’s Kwai Chung port.
China is an integral part of the company’s strategy as the country is involved in almost “every trade in the world”, Bin Sulayem said.
He said he disagrees with the view, held by some in the West, that China is slowing down. “They don’t understand that the market has more than doubled in the last 10 years. We envisage China’s products are more [than ever] in demand today.”
Bin Sulayem said the company sees a lot of potential in the Greater Bay Area, citing the collective US$1.7 trillion gross domestic product and population of more than 86 million. Beijing created the Greater Bay Area five years ago to integrate Hong Kong, Macau and nine mainland cities in Guangdong province into an economic powerhouse.
“We watch the fantastic development in the Greater Bay Area. When you put Hong Kong as part of the Greater Bay Area, growth opportunities become very significant,” he said. For example, the firm is looking at the strong manufacturing ability in Guangzhou, the capital of Guangdong province in southern China, and how to make its products more efficient to ship to the world.
“We see an increase in business in China. There is growth and the growth will continue,” Bin Sulayem said.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2024. South China Morning Post Publishers Ltd. All rights reserved.
