DP World eyes growth with BPSA transport acquisition
Supply chain specialist DP World is eyeing an expansion of its business in Southern Africa with the acquisition of assets of petroleum giant BP’s secondary transport operations in the region.
The Dubai-based DP World, which owns Imperial Logistics, said on Wednesday it had acquired the majority of the transport assets of BP Southern Africa (BPSA) in a move that will result in DP World taking over BPSA’s Cape Town, Johannesburg, Pretoria and Rustenburg logistics operations.
Separately, Makwande Supply and Distribution — a beneficiary of BPSA’s enterprise development programme — will take over its Durban and East London operations, it said in a statement.
With operations in Europe, North and South America, Australasia, Asia and Africa, global energy giant BP has operated on the continent for more than 100 years with operations from exploration to refining and fuel product distribution.
In SA, it was one of the few major industry players still running its own transport operations. But it had decided to outsource its transport operations in Southern Africa, said BPSA CEO Taelo Mojapelo. The rest of the global BP business also outsources its transport operations. Mojapelo said that outsourcing the secondary transport business to specialist entities helped improve the company’s operating standards and efficiency, as third-party specialists had the depth and capacity to invest in world-class technologies, driver training and effective monitoring mechanisms.
“We have confidence in the calibre of partners we have selected, and look forward to productive and mutually beneficial working relationships into the future,” said Mojapelo.
DP World, which operates nine ports and terminals in eight African countries, previously lauded the continent as a growth region that offers opportunities for further development in the ports and logistics sector, trade corridors and e-commerce.
In Sub-Saharan Africa, DP World employs more than 27,000 people, has a fleet of 6,000 vehicles and operates in 48 markets. The group bought Imperial in 2022 in a multibillion-rand deal.
“As a leading provider of smart logistics solutions globally, and one of the largest logistics providers in SA, DP World is proud to partner with BPSA in their landmark decision to outsource their secondary transport,” COO of logistics in Southern Africa, Mark Rylance, said.
“This partnership will reap the benefits of combining BPSA’s established customer networks with our expertise in providing value-adding logistics solutions. I look forward to this partnership unlocking new opportunities for growth and success for both organisations,” he said.
DP World said it was unable to disclose the impact of the acquisition on the size of its transport operations due to “confidentiality reasons”.
By investing in innovation, DP World said that it was intent on leveraging technologies from intelligent delivery systems to automated warehouse stacking, to ensure it remained at the cutting edge of disruptive technology.
In early March, BPSA’s hopes of getting R224m in tax refunds from the SA Revenue Service were dashed when the high court in Pretoria refused its leave to appeal against a previous dismissal of its claim.
WE LOOK FORWARD TO … PRODUCTIVE AND MUTUALLY BENEFICIAL WORKING RELATIONSHIPS
Taelo Mojapelo BPSA CEO