Spence to expand to Africa in maritime sector
Having expanded to Fiji with its port terminals, Aitken Spence PLC is further considering other maritime opportunities in the African region, senior company officials said.
“We are eyeing opportunities in Africa for port technical handling,” a senior official told the Business Times. He added the company is also looking at other regions, but negotiations with African nations remain top priority.
The logistics sector of the company witnessed a downturn for the second consecutive quarter with revenues dipping nearly 5 per cent year on year (YoY) to Rs. 1.7 billion and profits plummeting 33 per cent YoY for 3QFY15. The international maritime sub-segment consisting of the Port Terminals Ltd which runs ports in Fiji performed well during the quarter.
The company acquired a 51 per cent majority stake in Fiji Ports Corporation’s subsidiary, Ports Terminal Ltd in May 2013 for US$ 6 million in order to handle cargo activities in two ports of Fiji totalling to estimated capacity of 700,000 TEUs per annum. Aitken Spence took management control of the Suva and Lautoka ports, Fiji for a period of 15 years in August 2013 and continues to enhance efficiency of the ports using its expertise in the field.
Their freight forwarding sub-sector, where air and sea cargo were distressed by competition and the integrated logistics business undergoing expansions and repair led to the slump in the sector, analysts said.
Currently the group’s largest yard operation is being developed at its 9 acre land in close proximity to the Colombo port and its specialised freight station for garments on hangers, Logilink is undergoing repairs. The latter would recommence operations by FY16E whilst the former is expected to be fully completed by FY17E.
In addition to being a pioneer in the hospitality industry having exposure in international markets and a dominant player in the cargo logistics sector, the company is seeking further growth opportunities in both local and international arenas, according to the official.