Hong-Kong based 3PL Kerry Logistics has acquired the services of South African forwarding and logistics company, Shipping and Airfreight Services (SAS), to help expand its presence on the African continent.
Kerry Logistics will utilize SAS for its air- and ocean-freight shipment, consolidation, charter, warehousing and distribution services as it pursues its goal to “expand its coverage worldwide.”
“South Africa’s economy has an important standing on the African continent, with excellent trade lanes not only to the Chinese market but also the large exporting economies of the European Union,” said Thomas Blank, Kerry Logistics’ managing director for the European region.
Over the last two years, Kerry Logistics has been expanding its services in Europe and Asia. In July 2017, it acquired a 50 percent stake in intermodal brokerage company, Lanzhou Pacific Logistics (LPL), servicing Asia and Eastern Europe, and underpinning its role in the One Belt, One Road initiative – the project forwarded by the Chinese government to promote trade connectivity between Eurasian countries.
The company cites South Africa’s growth in automotive production, which accounts for 10 percent of South Africa’s manufacturing exports, as a driving factor behind the decision to acquire SAS.