Exclusive: DP World Leveraging Hong Kong Acquisition to Connect China’s Manufacturing Might with Global Markets, Eyes Expansion in Africa

Special Report | Dubai's DP World to employ Hong Kong's supply chain service for global China connection

The UAE's port company plans to take advantage of its purchase of Cargo Services Far East to improve logistics, distribute Chinese goods worldwide, and increase its presence in Africa.

DP World, the port and logistics company based in Dubai, is planning to distribute products from China globally. This strategy comes as a result of their recent purchase of Cargo Services Far East, a company located in Hong Kong.

The company from the United Arab Emirates is optimistic about the production and commerce strengths of the globe's second-biggest economy, and has enhanced its capacity in Hong Kong to capitalize on the substantial growth potential, as stated by Chairman and CEO Sultan Ahmed Bin Sulayem.

"Bin Sulayem expressed a strong interest in further penetrating the Chinese market during an interview in Hong Kong. He explained that previously they had used Dubai as a base, but now they see potential in adding value in China, by linking Chinese goods with Africa and other nearby nations."

In the previous month, DP World successfully finalized the purchase of Cargo Services Far East from Hong Kong's business magnate, John Lau. This newly acquired supply chain service will equip DP World with the necessary skills to serve clients in the retail and luxury fashion industries, while also enhancing their penetration into the Chinese market, according to Bin Sulayem.

"Presently, China serves as the world's manufacturing hub," he stated. "This purchase enhances our position in China, providing us improved logistics and linking our clients to different areas."

Established in 1989 by Lau, Cargo Services Far East specializes in a variety of businesses such as sea and air cargo transportation, food and cold-chain logistics, and fashion logistics, as stated on their website. The company has branches in various locations including China, the UK, the US, South Africa, India, and Singapore. In addition to this, Lau holds the position of chairman and executive director at CN Logistics International, a company listed in Hong Kong.