I have been reading many reports in the media regarding the news that Neptune Orient Lines (NOL) is planning to sell its logistics business unit – APL Logistics – in order to improve its performance. However, NOL issued a “Clarification on Media Report” stating that “These considerations are preliminary and exploratory in nature. There is no assurance that any definitive transaction for the sale or an IPO of NOL’s logistics business will be conducted.”
In the media response NOL also mentioned that they are continually evaluating all available options to improve the strategic positioning and performance of it businesses. If NOL does sell of the the APL Logistics business unit it would be left to focus on its APL liner business.
According to a report on the JOC, APL Logistics 2nd quarter numbers were well in the black with earnings before interest and taxes up 40 percent on logistics revenues that topped $800 million. The APL Logistics units currently contributes 18 percent of NOL’s overall revenue.
Being a long time former customer of APL Logistics, this will be a story that I will be watching closely over the next couple of months and will be providing further updates as they happen.