APL Logistics

APL Logistics Ltd. (APLL) is a wholly owned subsidiary of Kintetsu World Express, Inc. (KWE), a Japan-based freight forwarding and transportation company.[1] As a global supply chain specialist, APL Logistics offers a comprehensive range of origin and destination services in more than 60 countries,[2] serving the automotive, consumer, industrials, and retail verticals, as well as providing transportation as a service.[3] Headquartered in Singapore, APL Logistics has locations across the globe.

APL Logistics
Formerly called
 American Consolidation Services
Industry Global supply chain specialist
Headquarters Singapore
Areas served
 Worldwide
Key people
  • William Villalon, Acting President
  • Kurt Breinlinger, CCO
  • Danny Goh, COO
Revenue US $1.6b (2014)
US $67m (2014)
Number of employees
 7,000
Website www.apllogistics.com

History

Pre-merger

In 1980, in response to the increasing importance of Asian imports, U.S.-based container transportation and shipping company APL created American Consolidation Services (ACS) to meet the needs of importers who wanted help in managing the flow of their Asian goods. As with similar such services, ACS was responsible for "monitoring the movement of goods to consolidation points and managing the consolidation of goods and shipping according to the specifications of buyers."[4] In 1996, ACS obtained a domestic distribution services license in China. Trying to take advantage of the burgeoning Internet, in 1999 it introduced one of the industry’s first Web-based ordering and shipment tracking systems. It was during this period that APL rebranded the service as APL Logistics.

Acquisition and incorporation

In 1997, Singapore-based Neptune Orient Lines Ltd. (NOL) acquired APL in a merger for US $825 million, a move that placed it within the top five of its industry.[5][6] As the smaller and less established of the two entities, NOL adopted APL as its public brand name following the merger. Previously, NOL had been carrying out logistics services under its Orient Container & Warehousing Services (OCWS) brand. To better focus on managing global supply chains, in 2000 NOL rebranded and incorporated its logistics service as APL Logistics, and it commenced operations as a standalone sister company to APL.[7]

Early expansion, acquisitions, and innovation

The following year, in 2001, APL Logistics’ acquired GATX Logistics for US $210 million to add warehouse services[8] to its offerings and increase its U.S. footprint in contract logistics, a move that it anticipated would increase its revenues by 70 percent, or approximately US $300 million.[9] The acquisition gave it access to 21 million square feet of warehouse space in North and South America.

To expand its presence in Europe, later that year APL Logistics acquired 51 percent of German freight forwarding company Mare Logistik & Spedition GmbH, which gave it a retail logistics platform in the German market and access to the rapidly expanding Asia-Europe trade market.[10]

In 2005, it formed Holistica Solutions,[11] a now defunct joint venture,[12] with UK-based distribution group Christian Salvesen to create an integrated supply chain with an end-to-end transport service using APL’s sea-freight and Salvensen’s land-transport assets.

In keeping with a philosophy of harnessing emerging technology for greater efficiency, in an attempt to find additional practical applications for radio-frequency identification (RFID) technology in logistics, NOL and APL Logistics teamed up with Sun Microsystems in 2005 to establish a test center in Singapore.[13] The center provided a live supply chain environment to evaluate RFID technology and application.

APL Logistics achieved two firsts in 2006 when it became the first foreign logistics firm to obtain a license to operate in Taiwan’s Kaohsiung Free Trade Zone (FTZ) [14] and when it teamed up with Con-way Freight and introduced OceanGuaranteed, the industry’s first guaranteed less-than-container load (LCL) / less than truckload (LTL) service, offering door-to-door, day definite delivery from key ports in Asia to the U.S.[15]

Two thousand and six also saw APL Logistics open offices in Spain and Turkey.[16]

India

That same year, 2006, parent company NOL won approval to operate freight rail services in India.[17] In a move designed to tap into the vast potential of India’s transportation market, sister company APL set up a joint venture between APL India and HIPE (Hindustan Infrastructure Projects & Engineering Private Limited), which was eventually placed under APL Logistics. Named India Infrastructure and Logistics Private Limited (IILPL), the joint venture provides rail-based container transportation and logistics services in India and is marketed under the APL IndiaLinx brand. To improve efficiency, APL IndiaLinx introduced its first double-stack container train service in India in 2011.[18] In 2014, IILPL became a wholly owned subsidiary of APL Logistics when the latter acquired the remaining 24 percent of HIPE’s shares for US $10 million.[19]

In 2012, to take advantage of favorable changes made by the Indian government regarding private rail transportation,[20] APL Logistics formed a joint venture with VASCOR called APL Logistics VASCOR Automotive.[21] It was formed to support the need for improved domestic transportation of finished vehicles within India, which had been dependent on less-efficient and more damage prone road-based vehicle haulers navigating India’s problematic road system.

North America

In 2008, APL Logistics began guaranteeing day-definite delivery of full container loads (FCL) to the U.S.[22] It also introduced the first 1,000 containers dedicated to U.S. domestic transportation in 2011, becoming an asset-based player in the logistics space for the first time.[23]

In a move that linked origin ports in Asia to every major North American market, APL Logistics and its trucking partner, Con-way Freight, introduced its OceanGuaranteed service to Mexico in 2009.[24]

Determined to strengthen the integration of its supply chain services, in 2012 the company acquired U.S.-based customs broker and freight forwarder Carmichael International Services for US $37 million. The acquisition gave APL Logistics expanded customs brokerage, trade compliance, and consultation capabilities.[25]

Further activity in North America included the 2013 launch of an online sales channel for Walmart in Mexico[26] and the opening of a customs brokerage office in Laredo, Texas.[27]

In early 2015, APL Logistics and APL Logistics Americas incorporated a new company called APL Logistics de Mexico, S.A. DE C.V. to carry out transportation logistics operations in Mexico, with APLL owning 99.9 percent of the stock.[28]

Asia

With an eye on the emerging Chinese automotive logistics market, in 2001 APL Logistics formed CMA Logistics (CMAL), a joint venture with Changan Minsheng.[29] A year later, APL Logistics established APLL-Zhiqin, a joint venture partnership with China’s Legend Holdings Ltd. and Beijing Willway Information Technology Co. Ltd. With offices and hub facilities in 30 Chinese locations, the joint venture had a transportation and distribution network spanning over 2,000 cities and access to a wide range of multinational and local companies. In 2012, APL Logistics signed an agreement to acquire all the shares of APLL-Zhiqin from its partners.[30]

Two thousand and nine saw the launch of APL Logistics' flow center operations in Dubai Logistics City’s (DLC) international free trade zone; the new center was intended to accelerate reliable cargo movement across the Middle East and reduce costs.[31]

In 2010, APL Logistics and Japan’s Sumitomo Warehouse Co. agreed on a joint marketing arrangement that allowed them to take advantage of a broad international client base to support each other through business leads and joint sales efforts. The deal called for APL Logistics to make its global services available to Sumitomo customers, and in return, Osaka-based Sumitomo offered its warehousing and other logistical capabilities in Japan to APL Logistics’ customers.[32]

In a bid to improve transit time efficiency for shippers and improve costs, in 2010 APL Logistics opened a 114,000 square foot container freight station located near two special economics zones in Chittagong, Bangladesh’s largest and busiest port.[33] The next year, to further broaden service offerings to customers in the apparel sector, the company opened two quality assurance centers in Bangladesh. Located in the cities of Dhaka and Chittagong, both centers are located near the majority of the country’s garment manufactures.[34]

Further expanding its services in Southeast Asia, in 2011 APL Logistics introduced containerized cross-border trucking between Cambodia and Vietnam to offer shippers a later cutoff time to reduce transit times by several days when production ran late.[35]

In 2015, to expand its footprint in Indonesia, APL Logistics announced that it had opened a new container freight station (CFS) at the Tungya Collins Terminal in Cakung, North Jakarta to handle export consolidation and warehousing services. The facility is a 120,000 square foot storage and distribution facility with yard space with cross-docking capabilities, and it has an annual handling capacity of 21 million cubic meters. APL Logistics has five warehousing services in Indonesia that coordinate with 280 factories.[36]

The company also announced in 2015 that, together with a local investor, it had incorporated a new company in Vietnam named APL Logistics Vietnam Company Limited to handle the provision of goods warehousing, storage services, and freight transport agency services. APLL has a 98 percent stake in the new company.[37]

Sale to KWE

In 2015, after parent company NOL suffered four consecutive years of loss, it sold APL Logistics to KWE for US $1.2 billion in order to strengthen its balance sheet and focus on returning APL, its container transportation and shipping operation, to profitability. The sale was finalized on May 29 after the parties secured all the necessary legal, regulatory, and shareholder approvals in Singapore and Japan.[38]

Current Joint Ventures

VASCOR Ltd

Created in 1987, VASCOR is a joint venture between APL Logistics and Fujitrans Corporation of Japan. VASCOR Ltd. is a third-party logistics (3PL) specialist dedicated to servicing the specific needs of the global automotive industry.[39]

Changan Minsheng APLL Logistics (CMAL)

Established in 2001, Changan Minsheng APLL Logistics (CMAL) is a joint venture between Changan Minsheng and APL Logistics Co., Ltd. CMAL is a third-party automobile logistics provider and comprehensive logistics provider in the Chinese market.[40][41]

APL Logistics VASCOR Automotive

APL Logistics VASCOR Automotive is a Delhi-based 3PL provider serving the automotive sector in India. Incorporated in 2012, the company is a joint venture of APL Logistics and VASCOR.[42] It handles end-to-end bulk transportation of vehicles and parts from the assembly line to destination utilizing specialized railcars with additional services including tracking, inspection, repair, and final mile delivery. In 2014, it invested in high-capacity rail rakes to gear up for expanded service through its AutoLinx service.[43]

APL Logistics/CFR AD Holdings, Ltd.

In 2015, APL Logistics entered into a joint venture with U.S.-based car exporter CFR Rinkens to transport vehicles by rail within the United States, Mexico, and Canada under the AutoDirect product name.[44]

Global infrastructure

Operating in more than 110 locations in 60 countries, APL Logistics manages 200 logistics facilities covering over 20 million square feet globally. It employs more than 6,000 logistics professionals across the world with local market knowledge. It is organized in the following seven geographical divisions:

Major industries served

APL Logistics operates worldwide within the following key industry sectors:

Services and solutions

APL Logistics provides industry solutions for the four verticals it serves (automotive, industrials, consumer, and retail) as well as supply chain engineering, supply chain services, technology services, and customer service.

Automotive

  • Inbound-to-manufacturing
  • Aftermarket parts
  • Finished vehicles
  • Intercontinental supply chain

Industrials

  • Inbound and outbound freight
  • Process and program management
  • Aftermarket spare part support
  • Supply chain collaboration, optimization, and analysis
  • Warehousing and distribution

Consumer

  • Consolidation and deconsolidation
  • In-country distribution
  • High-touch value added services
  • Lean warehousing

Retail

  • Supply chain visibility, flexibility, and control
  • Omni channel
  • Order management
  • Consolidation
  • E-fulfillment

Comprehensive services

  • Consolidation
  • Deconsolidation
  • Customs brokerage
  • Air and ocean freight management
  • Warehousing
  • Distribution
  • Supply chain consulting
  • Transportation management
  • Value-added services

Leadership

References

  1. ↑ Hand, Marcus. Seatrade Maritime News. "NOL confirms sale of APL Logistics to Kintestsu World Express for $1.2bn", 17 February 2015. Retrieved 27 July 2015.
  2. ↑ Journal of Commerce. "APL Logistics". Retrieved 27 July 2015.
  3. ↑ Bloomberg Business. "Air Freight and Logistics Company Overview of APL Logistics Ltd". Retrieved 10 August 2015.
  4. ↑ Grammenos, Costas. (2010). The Handbook of Maritime Economics and Business, 2nd Edition. Lloyd's List. p. 464. Informa Law from Routledge. ISBN 1843118807.
  5. ↑ Los Angeles Times. "Neptune Orient to Buy APL in $825-Million Deal". 14 April 1997. Retrieved 12 August 2015.
  6. ↑ Funding Universe. "Neptune Orient Lines Limited History." Retrieved 13 August 2015.
  7. ↑ Office of Industries and the Office of Economics. United States International Trade Commission. (May 2005) "Logistic Services: An Overview of the Global Market and Potential Effects of Removing Trade Impediments. Investigation, No. 332-463 USITC Publication 3770". p. F3. Retrieved 30 July 2015.
  8. ↑ PR Newswire. "APL Logistics Purchase of GATX Logistics Completed". 1 Feb 2001. Retrieved 6 August 2015
  9. ↑ San Francisco Business Times. "APL Logistics acquires GATX". 8 January 2001. Retrieved 8 August 2015.
  10. ↑ Song, Dong-Wook, Panayides, Photis (2004). Maritime Logistics: A Guide to Contemporary Shipping and Port Management, Second edition. p. 182. Kogan Page Limited. ISBN 978-0749472689.
  11. ↑ London, Paul B. Trade Winds. "NOL teams up with Salvesen in logistics venture" 21 December 2005. Retrieved 29 July 2015.
  12. ↑ Endole. "Holistica Solutions Limited". Retrieved 8 August 2015.
  13. ↑ O’Connor, Mary Catherine. RFID Journal. "Sun to Build Korean RFID Test Center". 29 Mar 2005. Retrieved 11 August 2015.
  14. ↑ Neptune Orient Lines. "Neptune Orient Lines Annual Report 2006". (2006). Retrieved 3 August 2015.
  15. ↑ Inbound Logistics. "Ocean Shippers Get Global Guarantee". September 20006. Retrieved 7 August 2015.
  16. ↑ Neptune Orient Lines. "Neptune Orient Lines Annual Report 2006". (2006). Retrieved 3 August 2015.
  17. ↑ Blazeland. "India Infrastructure and Logistics Private Limited". Retrieved 11 August 2015.
  18. ↑ World Cargo News. "APL launches Indian double stack service". 13 July 2011. Retrieved 14 August 2015.
  19. ↑ RailNews. "APL Logistics buys out partner HIPE Transportation in India Rail Freight JV". 27 January 2015. Retrieved 13 August 2015.
  20. ↑ First Post. "Government allows private companies to work on railway projects". 23 November 2012. Retrieved 12 August 2015.
  21. ↑ Journal of Commerce. "APL Logistics, VASCOR in Joint Venture to Serve India’s Automotive Sector". 5 December 2012. Retrieved 3 August 2015.
  22. ↑ Shipping Online.CN. "APL Logistics starts guaranteed delivery of full container loads". Retrieved 4 August 2015.
  23. ↑ Global Logistics Media. "APL Logistics debuts 53-foot containers in North America". 16 June 2011. Retrieved 5 August 2015.
  24. ↑ Neptune Orient Lines. "Neptune Orient Lines Annual Report 2009" (2009). Retrieved 10 August 1915.
  25. ↑ Las Marias, Stephen. Logistics Insight Asia. "APL Logistics Acquires Carmichael International Service". 21 November 2012. Retrieved 11 August 2015.
  26. ↑ Journal of Commerce. "APL Logistics Supports Wal-Mart Online Sales in Mexico". 8 July 2013. Retrieved 13 August 2015.
  27. ↑ JCtrains.net. "APL Logistics Opens Brokerage Office in Laredo, Texas". 3 January 2014. Retrieved 14 August 2015.
  28. ↑ Bloomberg Business. "APL Logistics Ltd and APL Logistics Americas, Ltd Announce Incorporation of New Company in Mexico". 29 April 2015. Retrieved 12 August 2015.
  29. ↑ Zhengzheng Gong. HighBeam Research. "Logistics company seeks IPO this year" 17 March 2004. Retrieved 14 August 2015.
  30. ↑ simic.net.cn "APL Logistics dives into Chinese interior with Beijing APLL-Zhiqin buyout". October 11, 2012. Retrieved 14 August 2015.
  31. ↑ 3PLNews.com. “APL Logistics Launches First Flow Center in Dubai Logistics City”. 26 August 2009. Retrieved 13 August 2015.
  32. ↑ Canadian Shipper “APL forms alliance with Japanese logistics firm”. 14 July 2010. 14 August 2015.
  33. ↑ Logistics Insight Asia. “APL Logistics Opens Bangladesh Container Freight Station”. 14 June 2010. Retrieved 13 August 2015.
  34. ↑ American Shipper. “APL Logistics opens Bangladesh quality centers”. 2 October 2012. Retrieved 13 August 2015.
  35. ↑ Leach, Peter T. Journal of Commerce. “APL Logistics Starts Cambodia-Vietnam Truck Service”. 22 November 2010. Retrieved 13 August 2015.
  36. ↑ Knowler, Greg. Journal of Commerce. “APL Logistics on the expansion trail while sale is sewn up”. 7 May 2015. Retrieved August 10 2015.
  37. ↑ Chua, Trinity. The Edge Markets. “NOL incorporates APL Logistics Vietnam”. 25 May 2015. Retrieved 14 August 2015.
  38. ↑ International Transport Journal. “APLL and Kintetsu World Express deal complete” 6 June 2015. Retrieved 7 August 2015.
  39. ↑ Klier, Thomas and Rubenstein, James (2008). Who Really Made Your Car? Restructuring and Geographic Change in the Auto Industry. p.195. W.E. Upjohn Institute for Employment Research.
  40. ↑ Bookbinder, James H. (2012). Global Logistics. p.19. Springer Science & Business Media.
  41. ↑ CMAL. “Profile”. Retrieved 14 August 2015.
  42. ↑ Automotive Logistics. “APL and Vascor launch auto LSP in India”. 8 August 2012. Retrieved 14 August 2015.
  43. ↑ Journal of Commerce. “APL Logistics VASCOR Automotive invests in high-capacity rakes, gears up new rail-based offering for finished vehicles in India”. 25 March 2014. Retrieved 13 August 2015.
  44. ↑ Reuters. “Neptune Orient Lines Ltd’s subsidiary enters into joint venture with CFR Rinkins, LLC”. 11 February 2015. Retrieved 14 August 2015.

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