[170912.EN.LOG] US Logistics Firms Plan To Exploit Opportunities In European Downturn

MERGERS and acquisitions are still occurring in Europe's logistics sector despite the weak economy with opportunities increasing as the EU's economic crisis intensifies.

One target of such activity is the intra-Europe road market, with US logistics providers in search of new geographic regions and expanding their market reach into these regions, reports the UK's Transport Intelligence.

It highlights that among the largest deals so far this year has been the UPS - TNT Express deal, which is scheduled for completion in early 2013. The report notes that TNT Express' intra-European road network was of particular interest to UPS due to its goal of expanding its market share. Similarly, FedEx is looking to expand its share of the intra-European market, having acquired Polish courier provider Opek and French express provider TATEX.

"While both of these acquisitions appear to be focused on expanding express/small parcel offerings, the latest industry acquisition may be a bit different in its strategy. CH Robinson has had a presence in Europe since 1993 and through the years expanded its forwarding network across the region via acquisitions. Last week, the company acquired Polish freight company Apreo. Apreo primarily provides truckload services - dry van, liquid and dry bulk and temperature controlled," it said.

Temperature-controlled transport has been of special interest to CH Robinson, which opened a facility in Rotterdam in June to provide temperature controlled logistics, one of the fastest growing business segments for the company in Europe. Besides truckload transport, Apreo also offers warehousing and air and ocean services.

According to Bryan Foe, president of CH Robinson Europe, the acquisition "supports our goals to strengthen our capabilities in our core business and further diversify our modal offering, both of which benefit our European and global customer base."

Source : HKSG.