OTS Logistics Group acquires Ocean World Shipping in Hong Kong
OTS Logistics Group has completed the acquisition of the assets and business of Ocean World Shipping in Hong Kong.
Ocean World Shipping (OWS) is a large ocean freight consolidator with a network servicing eight locations in China and is considered a major provider of neutral consolidation services in that country. The acquisition will give OTS Logistics Group access to this network in China.
“The acquisition will add over 1 million cubic meters of LCL (less than containerload) freight to our network,” said Owen Glenn, chairman of OTS Logistics Group, in a statement about the acquisition Thursday. “The significance of this volume is the economy of scale that we will now be able to offer our customers that is unmatched in the market place.”
Terms of the deal were not released. However, Glenn said the acquisition will help OTS Logistics Group reach its revenue target of $1 billion in the next few years.
“We can add substantial value to shippers and consignees on either side (China and the United States) and make the supply chain so much more efficient,” Glenn said. “We have now put in place one of the largest networks of point-to-point services, including pre-carriage, ocean freight and destination services, in the world.”
Ocean World Shipping president Thomas Tong said his company was particularly attracted to OTS Logistics Group’s processes and systems. “Collaborative technologies are vital to success in today’s logistics game,” he said.
OTS Logistics Group plans to keep the OWS brand operational. “The OWS brand is successful in the market place,” said Michael Dye, chief executive officer of OTS Logistics Group for the Asia Pacific. “Our systems already accommodate multiple brands and we have a history of leveraging brand loyalty into back office efficiency.”
Other non-vessel-operating common carrier service brands operated by the company are Brennan International Transport, Conterm Consolidation Services, Direct Container Line and Vanguard Logistics.
Management of both OTS Logistics Group, which is represented in Hong Kong by Vanguard Logistics, and the acquired business of Ocean World Shipping will continue to play key roles in the new merged business, company officials said.
OTS Logistics Group recently said its subsidiary Vanguard Logistics had acquired a Class “A” license in Zhuhai, China, and that group’s senior management will now be located in Hong Kong. Zhuhai is the focal point for the group, with “a substantial investment” planned in the form of a “Global Resource Center,” which will provide support facilities for its global network.
“The company will continue to pursue acquisition opportunities in Asia and elsewhere,” OTS Logistics Group officials said.