Tuesday, April 9, 2019

Container Shipping Line Achieves Acquisition of Freight Forwarding and Logistics Group

New Operating Centre Will Consolidate Management Functions
Shipping News Feature
FRANCE – SWITZERLAND – With outstanding shares and voting rights of freight forwarding and logistics group CEVA due for settlement as scheduled for 16 April 2019, the company's acquisition by the CMA CGM shipping group is all over bar the shouting. Loss making CEVA passes into French ownership as, by the due date, CMA CGM will hold 97.89% of the assets. The firm will then be delisted from the Zurich Stock Exchange.

There is no word of a rebranding exercise but it would be no surprise if the CEVA name disappears as the French container line has plans to create an operational centre in Marseilles, where it is headquartered, to ‘consolidate the management teams and accelerate CEVA Logistics’ return to profit’.

The resultant operation will see a presence in 160 countries with 110,000 employees and in excess of $30 billion in revenue. CMA CGM says it will now concentrate on meeting the logistics needs of its customers around the world with a comprehensive range of solutions across the supply chain, including LCL, airfreight, purchase order management, contract logistics or customs clearance.

The operational centre will bring together the management teams and support functions, seeing 200 jobs either created or transferred and this consolidation is intended to improve productivity by investing in information systems and digital technology. The object is to streamline the corporate organisation, which sound suspiciously like staff reductions, and to reduce the number of operating regions and rationalising local customer service teams and to ‘achieve a more balanced customer segmentation’. Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, commented:

“This successful transaction marks a major milestone in the history of CMA CGM’s growth. With CEVA, CMA CGM has confirmed its position as a leading worldwide maritime transport and logistics group, supported by a team of 110,000 employees. We can now offer our customers a complete range of solutions that meet all their needs and set us apart from the competition.”

Photo: The impressive CMA CGM Tower in Marseille will be the likely venue for the new logistics operating centre.