Global logistics giant DP World is acquiring key assets of bp Southern Africa’s secondary transport operations, marking a significant expansion of its business in South Africa.
GLOBAL logistics giant DP World is acquiring key assets of bp Southern Africa’s (bpSA) secondary transport operations, marking a significant expansion of its business in South Africa.
International energy group bp has operated in Africa for more than 100 years – with operations from exploration to refining and fuel product distribution. In South Africa, it is one of few major industry players still running its own transport operations.
The value of the transaction was not disclosed, a DP World spokesperson said yesterday.
UAE-based global logistics group DP World, which has staff in 74 countries on six continents, acquired South Africa-based Imperial Logistics, effective in 2022. In the year to December 31, 2023, DP World lifted revenue 6.6% to $18.25 billion (R347bn) and adjusted earnings before interest, tax, depreciation and amortisation by 1.9% to $5.11bn.
“As a leading provider of smart logistics solutions globally, and one of the largest logistics providers in South Africa, DP World is proud to partner with bpSA in their landmark decision to outsource their secondary transport,” Mark Rylance, chief operating officer: Logistics for DP World in sub-Saharan Africa, said in a statement.
DP World will take over bpSA’s Cape Town, Johannesburg, Pretoria and Rustenburg logistics operations. Separately, Makwande Supply & Distribution – a beneficiary of bpSA’s enterprise development programme – will take over its Durban and East London operations.
“The rest of the global bp business also outsources its transport operations,” said bpSA CEO Taelo Mojapelo.
“Outsourcing the secondary transport business to specialist entities helps improve our operating standards and efficiency, as third-party specialists have the depth and capacity to invest in world-class technologies, driver training and effective monitoring mechanisms.
“We have confidence in the calibre of partners we have selected and look forward to productive and mutually beneficial working relationships into the future,” said Mojapelo.
He said the partnership would reap the benefits of combining bpSA’s established customer networks with their expertise in providing value-adding logistics solutions.
“I look forward to this partnership unlocking new opportunities for growth and success for both organisations,” said Rylance.
BUSINESS REPORT