Singapore’s Neptune Orient Lines completed the sale of its logistics business, APL Logistics, to Japan’s Kintetsu World Express on 29 May.
NOL, the parent of liner operator APL, sold the logistics unit for USD1.2 billion.
The sale will enable NOL to raise funds as it works towards restoring profitability for APL, which has been incurring annual losses since 2011.
The company said in a conference call early this year that it did not have the resources to simultaneously grow the businesses of APL and APL Logistics.
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A company official told IHS Maritime, “While APL Logistics has been our only profitable business in the last few years, it accounts for a minor part of the total revenue. We also got a fair price from Kintetsu so given the situation we think the sale is justified.”
Kintetsu had pipped other interested buyers, including CJ Korea Express, to the sale.