DP World acquires Australian logistics specialist
Silk Logistics has been valued at A$174.5m and operates 21 logistics hubs across five Australian states
Move reflects DP World’s wider strategy to expand its presence in the Asia-Pacific region, which chairman Sultan Ahmed bin Sulayem says is a ‘big growth market’
DP WORLD has acquired Australian company Silk Logistics as it seeks to expand its presence in the Asia-Pacific region.
Silk Logistics operates 21 logistics hubs and 25 warehouse sites across five of Australia’s six states. DP World Australia, a subsidiary of the Dubai-based logistics giant, has entered into a binding agreement to purchase 100% of the share capital of Silk Logistics at A$2.14 per share, valuing Silk Logistics at A$174.5m ($115m).
DP World chairman Sultan Ahmed bin Sulayem recently told Lloyd’s List that his company saw the Asia-Pacific region as a “big growth market”, accounting for 40% of global revenue for contract logistics services by 2027.
Reflecting on this latest acquisition, Sulayem said the purchase of Silk Logistics “marks a significant step forward in strengthening our integrated logistics capabilities and expanding our service offerings”.
DP World Australia already operates four container terminals at Brisbane, Fremantle, Melbourne and Sydney, as well as inland distribution centres.
The deal to buy Silk Logistics is still subject to approval from shareholders and must clear the usual regulatory hurdles, but DP World said it expected the transaction to complete in early 2025.
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