Damco buys PacNet to grow presence in China

Damco, the logistics arm of the Danish shipping conglomerate AP Moller-Maersk Group, has agreed to buy the Australian global logistics company Pacific Network Global Logistics, a leading freight forwarder in China and Australia markets, for an undisclosed amount.

Damco said the current PacNet senior management team will join Damco and the existing operations will be run by largely the same people.

Damco said the move will enhance its network and forwarding capabilities in Australia and China and help it gain market leadership positions in retail and lifestyle sectors in Australia while further strengthening its position in airfreight from China to Australia, the company said.

PacNet said the deal will help its Australian customers as they seek to expand their sourcing from China to the rest of the World.

Damco has been expanding its presence in the Chinese market in recent years. In March, the company said it plans to set up five new offices in West China, in addition to its existing 19 on the Chinese mainland, according to Henriette Thygesen, the company's chief executive for North Asia, who added it will also expand its airfreight capacity in the country.

In 2011, Damco increased its airfreight services through the acquisition of NTS International Transport Services Co Ltd in China. In the same year, it also set up a customer service center in Chengdu, West China.