P&O GROUP MAY SELL $1.1-BILLION EUROPEAN LOGISTICS BUSINESS

P&O GROUP MAY SELL $1.1-BILLION EUROPEAN LOGISTICS BUSINESS    United Kingdom-based Peninsular and Oriental Steam Navigation Co., the parent company of P&O Nedlloyd Container Line and P&O Ports, said that is considering the possible sale of its European contract logistics business.
   The group’s contract logistics arm, the main activity of P&O Trans European, provides third party logistics services and supply chain management in Europe. The contract logistics business had revenues of '746 million ($1.1 billion) and an operating profit of '16 million last year. It employs over 7,000 staff.
   The potential sale does not concern P&O’s smaller unit load Ferrymasters transport arm, another activity of P&O Trans European. P&O Cold Logistics, another logistics arm of the group, is not affected by the proposed sale either.
   “The possible sale would be in line with P&O’s strategy of increasing focus on its fastest growing businesses where it has a clear competitive advantage,” a spokesman for P&O said.
   “In considering the group’s future development opportunities… we have to bear in mind the increasingly global nature of logistics and our commitment to focusing on those businesses which we believe will achieve the greatest value for our shareholders,” said Jeffrey Sterling, chairman of P&O.
   The group’s European contract logistics business specializes in four sectors: automotive, petrochemical, industrial and consumer goods.