Singapore’s PSA International continues to hit the mergers and acquisitions trail as it looks to develop its logistics footprint.
The company has acquired a strategic minority stake in SOTRANS Group (STG) also known as South Logistics Joint Stock Company from Indo-Trans Logistics (ITL).
“Established in 1975, STG is a leading logistics provider in Vietnam, well-known for providing reliable and efficient supply chain solutions,” PSA said.
“The partnership between PSA and ITL leverages STG’s strong presence in Vietnam with its local expertise in logistics, ports, barging, and project cargo, and PSA’s global network of deepsea, rail and inland terminals.”
Tan Chong Meng, group CEO of PSA International, said: “This latest venture into Vietnam strengthens our network in the region and is in line with our aspiration to be a global supply chain orchestrator and enabler of sustainable trade.
“With its strong fundamentals and robust growth potential, Vietnam is poised for further economic expansion and we are glad to be able to work with like-minded partners to broaden and deepen our involvement in the country with this latest collaboration.”
Ong Kim Pong, regional CEO Southeast Asia, PSA International, added that this strategic collaboration enables both companies to leverage synergies and further strengthen PSA’s position to deliver a “stronger value proposition to our customers”.
ITL executive chairman Zulkifli Bin Baharudin said PSA’s acquisition of a strategic stake in SOTRANS is an opportunity for the company to “leverage on PSA's global network to maximise the growth potential of Vietnam's port and maritime industry”.
This transaction is the latest in a series of acquisitions by PSA following a restructuring of itself into two core businesses of ports and cargo solutions.
The state-owned group said the move was in line with its long-term strategy and that its new mid-mile logistics would be its “unique service differentiator”.
In April, PSA acquired a majority stake of 75% in privately held Turkish logistics company ALISAN Logistics for an undisclosed fee.
It is just over a year ago that PSA completed its acquisition of supply chain, transportation and logistics solutions provider BDP International from New York-based private equity firm Greenbriar Equity Group.
PSA said at the time that BDP’s acquisition adds “strength and depth to its logistics and supply chain offerings beyond the port”.
The state-owned terminal operator controls more than 60 deepsea, rail and inland terminals across 42 countries, according to its website.
