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DP World takes digital battle to carriers and forwarders with launch of CARGOES Logistics

Founded in 2005 by the merger between Dubai Ports International and the Dubai Ports Authority, DP World’s metamorphosis from terminal operator to global box integrator is becoming more clear.

The Dubai conglomerate yesterday released the next chapter in its bid to control all ends of the global supply chain.

CARGOES Logistics is DP World’s new digital logistics platform, which will make many middlemen in the freight business shudder.

With CARGOES Logistics, customers can choose from multimodal logistics options, ship freight by sea, road, and/or rail, get instant quotes, swift booking confirmation and multiple secure payment options in three simple steps – search, choose and book. It will offer easy and swift cargo booking from origin to destination. The first phase of the launch will immediately offer customers access to book cargo from UAE to India as well as India to multiple destinations across the Middle East, Subcontinent, Southeast Asia, the Far East and North Africa. Officials at DP World have yet to respond to Splash enquires about a further global rollout for its new product.

The competitive battle for the vast and lucrative logistics market is heating up

“CARGOES Logistics aims to address complexities and inefficiencies that exist in global supply chains including multiple handovers, inefficient tracking and limited visibility of a shipment across the supply chain,” DP World stated in a release yesterday.

Rizwan Soomar, CEO, Subcontinent, DP World, said: “This announcement is a testament of our commitment towards enabling smart logistics globally. With CARGOES Logistics, our aim is to build and offer highly efficient, seamless and end-to-end transparent supply chains.”

Pradeep Desai, chief technology officer at DP World, said the new offering covers all aspects of global trade including finance, ERP, tracking, customs software, enabling end-to-end logistics.

DP World has diversified dramatically from its roots at Jebel Ali port. Today, in addition to its sprawling global network of ports, it controls a fleet of boxships, including brands such as Unifeeder, Transworld Feeders, Feedertech and Perma Shipping, placing it as a top 15 global carrier.

Lars Jensen, CEO of container advisory Vespucci Maritime, told Splash that DP World’s rollout of an online one-stop shop for container shipments was all part of super competitive field for mastery of digital logistics.

“It shows DP World as an increasingly important player in the multi-front battle field for the logistics market. This is a competitive battle having multiple different fronts involving carriers going digital, carriers going deeper into logistics, logistics providers going digital, digital solution providers ramping up on physical capabilities, diversified cargo owners entering logistics as well as a host of other constellations,” Jensen said, adding: “This is just one amongst many developments clearly exemplifying that the competitive battle for the vast and lucrative logistics market is heating up.”

There are other companies with similar logistics integrator aims to DP World, most notably Maersk. The world’s largest container carrier – on track to lock in a record EBITDA of between $22bn to $23bn this year – has made clear it is keen to make a big logistics acquisition this year, with plenty of speculation this month linking it to a take-over of C. H. Robinson, an American Fortune 500 provider of multimodal transportation services and third-party logistics with revenues in excess of $16bn last year.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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