DP World takes digital battle to carriers and forwarders with launch of CARGOES Logistics

Founded in 2005 by the merger between Dubai Ports International and the Dubai Ports Authority, DP World’s metamorphosis from terminal operator to global box integrator is becoming more clear.

The Dubai conglomerate yesterday released the next chapter in its bid to control all ends of the global supply chain.

CARGOES Logistics is DP World’s new digital logistics platform, which will make many middlemen in the freight business shudder.

“CARGOES Logistics aims to address complexities and inefficiencies that exist in global supply chains including multiple handovers, inefficient tracking and limited visibility of a shipment across the supply chain,” DP World stated in a release yesterday.

Rizwan Soomar, CEO, Subcontinent, DP World, said: “This announcement is a testament of our commitment towards enabling smart logistics globally. With CARGOES Logistics, our aim is to build and offer highly efficient, seamless and end-to-end transparent supply chains.”

Pradeep Desai, chief technology officer at DP World, said the new offering covers all aspects of global trade including finance, ERP, tracking, customs software, enabling end-to-end logistics.

DP World has diversified dramatically from its roots at Jebel Ali port. Today, in addition to its sprawling global network of ports, it controls a fleet of boxships, including brands such as Unifeeder, Transworld Feeders, Feedertech and Perma Shipping, placing it as a top 15 global carrier.

Lars Jensen, CEO of container advisory Vespucci Maritime, told Splash that DP World’s rollout of an online one-stop shop for container shipments was all part of super competitive field for mastery of digital logistics.

“It shows DP World as an increasingly important player in the multi-front battle field for the logistics market. This is a competitive battle having multiple different fronts involving carriers going digital, carriers going deeper into logistics, logistics providers going digital, digital solution providers ramping up on physical capabilities, diversified cargo owners entering logistics as well as a host of other constellations,” Jensen said, adding: “This is just one amongst many developments clearly exemplifying that the competitive battle for the vast and lucrative logistics market is heating up.”

There are other companies with similar logistics integrator aims to DP World, most notably Maersk. The world’s largest container carrier – on track to lock in a record EBITDA of between $22bn to $23bn this year – has made clear it is keen to make a big logistics acquisition this year, with plenty of speculation this month linking it to a take-over of C. H. Robinson, an American Fortune 500 provider of multimodal transportation services and third-party logistics with revenues in excess of $16bn last year.