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NOL targeting logistics acquisitions, no newbuild orders at present

NOL targeting logistics acquisitions, no newbuild orders at present
Neptune Orient Lines (NOL) is targeting acquisitions for its logistics business, but is holding off making investments in more containership newbuildings.

Speaking at a half year results webcast on Thursday Beat Simon, president APL Logistics said: “We are in the final stages of a strategic review to set the future direction of the logistics business.”

In terms of growing the business he said, “We will focus our growth plans on selected industry verticals in attractive markets where we are confident in building a strong market position.” APL Logistics is focused on industry segments such as automotive, retail and fashion.

As part of this growth acquisitions are on the cards. “We build a robust M&A pipeline to capture opportunities in selected industry verticals or attractive markets,” Simon said.

However, NOL is not expecting any immediate large capital expenditure requirements as a result of these plans. Cedric Foo, deputy president and cfo of NOL said: “We don’t think these [acquisitions] will be that large and they will take time.”

For the APL liner business NOL has completed taking delivery of 34 newbuildings it had on order. “We’ve just take delivery of all the newbuilds and with these new vessels I think APL now has some of the most competitive assets in the trade lanes it operates in,” said Ng Yat Chung president and ceo of NOL.

While it will continue to review the performance of its fleet it has no further vessel order plans at this time.

“As of now we have not made any additional decisions on investments in new vessels,” Ng said.

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