PIL Sells Liner Shipping Business to Neptune
- Business & Finance
Pacific International Lines (PIL) has sold its liner shipping business Pacific Direct Line (PDL) to Neptune Pacific Line (Neptune).
PDL specializes in providing liner shipping services to the South Pacific region, with additional bolt-on businesses allowing PDL to offer a one-stop shop for clients. It also offers services in shipping, shipping agencies, cruise agencies, container depots, warehousing, and stevedoring.
Its Pacific network spans from Australia to Tahiti, as far north as Micronesia, and back to New Zealand in the south.
Commenting on the acquisition, Neptune said that combined business will seamlessly link transport, warehousing, depots, and customs clearance services and fully integrate customers’ supply chains across 18 South Pacific markets.
The acquisition of PDL will strengthen Neptune’s Melanesian and Polynesian network, provide a link to Micronesia and the French territories, and enhance connectivity to global markets via strategic hubs in New Zealand and Fiji.
“By acquiring PDL, we can further develop our mainline shipping network to provide fixed-day services and increase the utilization of our combined fleet, enabling us to continue to offer competitive freight rates. PDL’s extensive logistics network will allow us to support our customers across their entire supply chain needs,” said Rolf Rasmussen, Managing Director of Neptune.
With the acquisition of PDL, Neptune will now have a specialized fleet of nine vessels dedicated to South Pacific Island trades and a team of more than 800, most of whom are based in supply chain services in the region.
Teo Siong Seng, Executive Chairman and Managing Director of PIL, said the divestment was part of the company’s strategic move to focus its resources on growing in the key liner markets that it operates in Asia, the Middle East, Africa and South America.
“We will continue to improve our liner services between Asia and Oceania including the South Pacific Islands,” he said.
“Pacific Direct Line was founded to support the socio-economic development of the Pacific Islands by providing reliable, consistent shipping and logistics services,” said Oliver Ravel, CEO of PDL.
“Today, with the support of PIL, PDL has grown to become a market leader in the South Pacific. By selling the business to our regional partner, we can ensure that this legacy will live on and that our customers will continue to be supported by a local service provider that understands the needs of the region.”
The move follows PIL’s disposal of 6 12,000 TEU container ships announced earlier this year.
As WMN reported, four of these ships were bought by Seaspan Corporation for approximately USD 367 million, while two were acquired by Wan Hai Lines for USD 186 million.
Confirming the deals last week. PIL said the company was happy with the prices obtained from the sales and that it plans to continue with its plan for the remaining excess vessels.
PIL owns and operates with a fleet of around 150 containerships, bulkers and multi-purpose vessels, serving more than 500 locations in over 90 countries worldwide.
The group has several business units such as container manufacturing, ship recycling, marine service, real estate, depot, and logistics services.