A new global powerhouse in offshore, marine and port logistics has emerged following a merger of two of the sector’s major players
DP World has combined offshore and port services with logistics in a new overarching group following its takeover of Topaz Energy and Marine.
It has merged the regional powerhouse in offshore support and logistics with P&O Maritime to form a global entity operating in maritime logistics.
Dubai-based P&O Maritime Logistics is a marine solutions and logistics group led by former Topaz Energy and Marine chief executive René Kofod-Olsen.
It will focus on three strategic segments – offshore, port services and logistics – across different industries, with emphasis on safety and the environment.
The move follows DP World’s US$1.1Bn purchase of offshore support vessel group Topaz Energy and Marine from Renaissance Services and Standard Chartered in Q3 2019.
The merger increased the group’s debt and led it to raise US$2.3Bn through bond listings in Dubai to improve its finances and build a warchest for investment.
Some of these funds are intended to finance growth of P&O Maritime Logistics in the future, according to DP World chairman and chief executive Sultan Ahmed Bin Sulayem.
“By bringing together the expertise of two great DP World companies, we will be strengthening the overall P&O brand which brings with it a legacy of more than 180 years of maritime history,” he said.
“We look forward to seeing the company develop through its next phase of growth under René Kofod-Olsen’s leadership,” Sultan Bin Sulayem said.
Mr Kofod-Olsen said the merger was necessary to remain ahead of industry trends.
“Customers now want a handful of select, trusted, suppliers who can provide much more than one single service,” he said. “Be it within one segment such as offshore or port services, or an integrated logistics offering with a combination of services.”
DP World will also use some of its raised funds to finance new ports and terminals using P&O Maritime Logistics as its tug operating partner.
But, Mr Kofod-Olsen said he still believes there will be difficult times in the offshore sector ahead.
“As the offshore industry remains in a state of anticipated recovery, 2020 is likely going to be another challenging year,” he said.
P&O Maritime Logistics will be in attendance at Riviera Maritime Media’s Annual Offshore Support Journal Conference, Awards and Exhibition in London from 4 February 2020 with chief commercial officer Robert Desai presenting on how OSV owners are moving into a digital age during the conference.