A joint venture has been announced between two players in the port logistics business. Patrick Port Logistics is to form a new joint venture with ACFS Port Logistics (ACFS). The joint venture is planned to bring together the Patrick and ACFS metropolitan logistics businesses.
The JV will bring together the combined business entities, involving all metropolitan transport, warehousing, container depots, and empty container parks. Both ACFS and Patrick will each own a 50 per cent equity interest in the new joint venture and the proposed joint venture will be reviewed by the ACCC. A statement by ACFS said the two operations have complementary geographic operations, volumes, and services.
“The joint venture will significantly improve ACFS’ footprint of strategic site locations, which will now cover all major container Ports around Australia,” said Arthur Tzaneros, ACFS’ Managing Director. “The national fleet will be significantly increased, with the addition of a national network of empty container parks, we can now offer our clients an integrated end to end supply chain solution.”
ACFS has a presence in all eastern states, and is a market leader in the Port of Sydney. The operation will also be providing the joint venture with additional facilities located in the Port of Brisbane (adjacent to the Patrick Terminal and currently under development), and in Fremantle, on a site adjacent to the North Quay Rail Terminal.
Patrick currently offers its strength with the largest volume Port of Melbourne, as well as a network of empty container parks in the eastern states, which is intended to complement the, soon to be developed, empty park facility in Fremantle. These additional services will enable the new joint venture to provide shipping lines with an alternative national provider.
“The newly created joint venture fast tracks the national expansion plan for the group, with a significant joint venture partner in Asciano,” said Tzaneros. “This will further enhance the services offered to our loyal and strong customer base, and also those potential new customers in the market place.”
The JV will be headquartered in Sydney, with senior management of each respective business combining, to create a new and strengthened management team. Tzaneros has been appointed as the new CEO of the joint entity.
Alistair Field, Director of Patrick Terminals and Logistics, is quoted as saying the joint venture will improve the competitive position of Patrick’s metropolitan logistics business, bringing operational efficiency, while establishing a platform for future growth.
“The joint venture will deliver an expanded platform of services allowing us to strengthen our customer relationships in an increasingly competitive market, while also providing Asciano with opportunities to grow over the long-term,” said John Mullen, Asciano’s CEO and Managing Director.