CMA CGM subsidiaries APL and Cheng Lie Navigation (CNC) will have their network operations merged under one management in a move to consolidate the two carriers’ intra-Asia business.
APL announced December 10 its proposed acquisition of the business of its sister CNC, adding that the regional operations will be placed under the CNC brand to be operated from Singapore, and will retain both sales networks and all sales channels.
The APL brand will be maintained in other trade lanes where APL trades.
“This strategic move will enable us to become the Intra-Asia Champion with the most comprehensive market connectivity in the Far East. With complementary market footprints, the combined portfolio of services is set to shore-up our relevance in the economically-thriving Asia through the CNC brand ahead,” said Nicolas Sartini, APL chief executive officer.
Today, there are 15 APL and 50 CNC weekly services that serve the key markets from North Asia to Southeast Asia along the Far East corridor. With APL and CNC complementing each other, their combined network will “offer one of the most comprehensive networks in intra-Asia,” APL said.
CNC has a significant presence across Asia including Cambodia, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, Myanmar, Philippines, Singapore, Taiwan, Thailand, and Vietnam.
APL offers transcontinental cargo shipping across Asia, North and South America, Europe, the Middle East, the Indian subcontinent, and Australia through more than 120 weekly services calling ports in over 70 countries worldwide.
Sartini said, “We have ambitious volume targets and market development plans for Intra-Asia that we will seek organically and via strategic acquisitions. As the Intra-Asia specialist, we will continue to customise our portfolio of services according to shippers’ demand and where the markets will shift tomorrow.”
Founded in 1971, CNC was one of Taiwan’s leading intra-Asia carriers before it was purchased by CMA CGM in 2007. APL, or American President Lines, was founded 170 years ago in the U.S., acquired by Singapore’s Neptune Orient Lines in 1997, and later sold to CMA CGM in 2016.
Photo source: APL
