Remaking of Maersk Will Take 3-5 Years
- Business & Finance
The transformation of Maersk Group from a conglomerate to an integrated global container logistics company is expected to take between three to five years, the Danish giant revealed during its Capital Markets Day held on February 21.
One year into its new strategy, A.P. Moller – Maersk claims to have already started unlocking value from its integration in the form of improved terminal utilisation, improved inland services, optimised hub operations, joint production planning between Maersk Line and Maersk Container Industry, and cross-selling across the brands.
“We are undertaking a transformation at scale, with significant progress one year in,” Maersk Group’s CEO Søren Skou said.
For the transformation to be completed, Maersk is yet to finalize the separation of its energy business, as structural solutions are still being sought for Maersk Drilling and Maersk Supply Service. Maersk believes that these will be defined before the end of 2018.
The company has just completed the acquisition of Hamburg Süd and is working on integrating its business while working at the same time with IBM and other IT majors on digitizing its business as a way of cutting costs and boosting asset productivity.
One of the key objectives of the digitalization drive is to reduce barriers within the international supply chain, enabling the growth of global trade and cutting costs to all parties in the supply chain.
“This is the background for A.P. Moller – Maersk’s digital ambitions, transforming the company into the digital leader of container logistics,” Ibrahim Gokcen, Chief Digital Officer, said.