Panalpina to acquire Kenya-based Air Connection

The international freight forwarder and third-party logistics provider intends to merge offices with vegetable- and flower-exporter Air Connection in Africa to provide expanded services to Europe and the U.S., the company said in a statement.    Basel, Switzerland-based international freight forwarder Panalpina will acquire the Kenyan forwarder Air Connection, the company said in a statement.
   Air Connection, which specializes in the export of flowers and vegetables, will be merged with Panalpina’s offices in Nairobi and Mombasa in order to offer continued exports of perishables from Africa into Europe. Panalpina also plans to develop the ocean freight business for both reefers and dry cargo at the Mombasa office to export perishables and textiles to the U.S.
   Financial details of the acquisition, which is still subject to approval, were not disclosed.
   If approved, the merged company will handle around 70,000 tons of perishables airfreight per year, according to Panalpina.
   “While most of Panalpina’s flower exports from Kenya currently go to auctions in Amsterdam, we are specialized in direct shipments to customers,” Manjit Brar, owner and managing director of Air Connection, said of the deal. “And while Panalpina is strong with big charter shipments from Kenya to Europe, our strength lies in smaller shipments on scheduled passenger flights to over 150 destinations worldwide.”
   Direct shipments seem to be a trend in the perishable market, according to Conrad Archer, managing director of Panalpina Airflo.
   “Increasingly, buyers of perishables want to source directly from the producer and producers want to sell directly to the country of consumption,” said Archer. “Direct shipping bypasses intermediaries, reducing touch points in the supply chain. It removes unnecessary costs, potential delays and most importantly allows a fresher product to be offered to the consumer.
   “At the same time, this development will make sophisticated end-to-end solutions even more important than today,” he added. “Joining forces with Air Connection will offer additional opportunities to grow the perishables business in Kenya, especially with the export of vegetables, herbs and cuttings.”
   News of the merger comes just two weeks after Panalpina officially announced the launch of its global “Perishables Network” and one year after the company acquired majority stake in Kenyan air forwarder Airflo.