Kuwait-based Public Warehousing Company (PWC) will provide logistics services to the Maritime and Mercantile International (MMI) Group, headquartered in Dubai, following an agreement between the two enabling PWC to acquire certain assets of MMI Logistics.
In a joint statement, Tarek Sultan, chairman and managing director of the PWC Group, and Kerem Camcigil, CEO of MMI, said the two companies could integrate perfectly, due to their common corporate cultures. Sultan elaborated that the move was part of PWC's active strategic expansion plans in the region.
"This alliance has been prompted by our desire to offer both current and prospective customers the advantages and economies of scale associated with an integrated 'one-stop shop' global logistics platform, with substantial resources throughout the Middle East." he said.
"This move not merely leverages PWC's strong regional presence in logistics operations and related solutions, but provides us with the opportunity to strengthen our current client relationships and further expand offerings to include third-party customers currently using the MMI Logistics facilities at Jebel Ali. Our synergies with MMI will undoubtedly allow us to rapidly expand operations in the region."
Camcigil said the two companies would work for the creation of an integrated regional logistics platform, combining the strengths of each company for a more competitive, truly regional force.
"While the agreement will provide enhanced regional logistics services to its client base, logistics will remain a core competency of MMI and an integral part of our service offer and management responsibility to our partners and suppliers. The agreement with PWC will allow MMI to focus more resources on developing our corporate strategy."
Mike Lee (former head of MMI Logistics) has been appointed general manager of PWC Logistics in the UAE.
Lee said that he would continue as the chief point of contact for all existing MMI Logistics customers, and to take on the role of expanding the business.
"PWC has made significant expansions throughout Iraq, Kuwait, Bahrain, Qatar, Oman, Saudi Arabia, Jordan, Syria and Lebanon over the past few months, and this entry into the UAE is an important foothold for the Group in gaining market leadership in the region," he commented.
Lee also affirmed the company's intention to service all existing clients of MMI Logistics under their existing contracts and agreements, stressing that the combination provided substantial value-add to the customers of both groups, through the creation of a common logistics platform with regional synergy.
According to Lee, "this is a great opportunity for our customers to expand their value propositions to existing customer, supplier, and stakeholder relationships."
The PWC Group was established in 1979 and provides, through its wholly owned division, PWC Logistics, leading edge supply chain and logistics to private and public sector entities worldwide.
PWC Logistics is one of the largest and most sophisticated supply chain management companies in the region, providing solutions to a range of global companies, with an extensive, well-established network across the Middle East, a highly customer-focussed team, and ISO 9001: 2000, ISO14001 and OHSAS 18000 certification across all operations. Services include transportation, warehouse and fleet management, inventory replenishment and order processing, and related solutions and value-added services. PWC is currently listed on the Kuwait Stock Exchange (KSE) with a market capitalisation of over $700 million and a shareholder base that comprises prominent private and public sector investors including the Public Authority for Social Security. Representative customers and partners include Nestlé, Schlumberger, Equate (a joint venture of Dow Chemicals) Microsoft Corporation, Oracle, HP, Exe Technologies, and the governments of Dubai, Kuwait, Argentina, Kazakhstan and the US.
