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Allcargo buys majority stake in Netherlands-based FCL operator

Port-based transportation company Allcargo Logistics Ltd said that it acquired majority stake in FCL Marine Agencies Rotterdam, a Netherlands-based logistics company, through its step down subsidiary company Ecohold NV for an undisclosed amount.
The company had informed BSE in a filing without disclosing details.

On 28 November, Mint reported that Allcargo Logistics has firmed up its plans to enter full container load (FCL) business through acquisitions in Europe in the context of shrinking margins of its existing less than a container load (LCL) business.

FCL business is collecting full container box of cargo while LCL business refers to collection of small cargos and aggregating these into a container, known as an LCL.

Privately held FCL Marine Agencies is a non-vessel owning common carrier and FCL operator based in the Netherlands with offices in Ridderkerk, Antwerp, Bremen and Hamburg.

Since 1988, FCL Marine has been operating as a FCL operator between US, Canada and other countries, according to FCL Marine’s website.

Apart from the liner service “we provide a full range of logistic services worldwide, through an integrated agency network”, the company website says.

Shashi Kiran Shetty, founder and executive chairman at Allcargo Logistics did not reply to text messages sent by Mint seeking a comment.

“One of the areas where we wanted to expand is into the business of FCL. Today, we are global leaders in LCL business. Now, we want to build a very strong FCL business,” Shetty had said in November.

Allcargo Logistics is working to become the world’s largest LCL operator by the end of this fiscal year, overtaking Vanguard Logistics of the US, according to analysts. Vanguard has a revenue of $800 million while Allcargo’s earnings are at $750 million.
In late September, Allcargo acquired US-based logistics company Econocaribe Consolidators Inc., which has over $125 million in revenue, to push its LCL business.
Source: LiveMint