Allcargo Logistics arm forms JV with Swedish firm to expand in Europe

Allcargo Logistics Ltd’s wholly-owned arm Allcargo Belgium NV has signed a definitive joint venture agreement with Swedish logistics company Nordicon Group.

Nordicon Group is a market leader in Nordics in Less-Container-Load (LCL) and rail consolidation, said Allcargo in its release today.

Allcargo Belgium, which operated ECU Worldwide, will hold a 65 percent stake in the JV, while the remaining would be held by the owners of Nordicon, Allcargo Logistics said.

With this strategic investment, ECU Worldwide will now be a market leader with a near 40 percent market share of the LCL business in the Nordic region.

“The partnership with Nordicon is in line with our vision of consolidating our market leadership and working with entrepreneurial teams to expand into new territories who share our vision for digital innovation for the logistics sector. Nordicon is led by a strong and capable team, and we are very pleased to welcome them into the larger ECU Worldwide family. This partnership is a great way to scale the global business and better serve customers,” the release quoted Shashi Kiran Shetty, chairman, Allcargo Logistics, ECU Worldwide, and Gati Ltd as saying.

This agreement expands ECU Worldwide’s service network and global reach further, adding new geography and specialised rail freight consolidation services to expand further across Europe.

This partnership will help better serve customers who are looking at flexible and time-bound logistics solutions in the Nordic region, said Allcargo.

Shares of Allcargo Logistics were up 2 percent from previous close on BSE today at Rs 194 per share. The company last year had announced its plans to delist from the stock market.Allcargo Logistics Ltd’s wholly-owned arm Allcargo Belgium NV has signed a definitive joint venture agreement with Swedish logistics company Nordicon Group.

Nordicon Group is a market leader in Nordics in Less-Container-Load (LCL) and rail consolidation, said Allcargo in its release today.

Allcargo Belgium, which operated ECU Worldwide, will hold a 65 percent stake in the JV, while the remaining would be held by the owners of Nordicon, Allcargo Logistics said.

With this strategic investment, ECU Worldwide will now be a market leader with a near 40 percent market share of the LCL business in the Nordic region.

“The partnership with Nordicon is in line with our vision of consolidating our market leadership and working with entrepreneurial teams to expand into new territories who share our vision for digital innovation for the logistics sector. Nordicon is led by a strong and capable team, and we are very pleased to welcome them into the larger ECU Worldwide family. This partnership is a great way to scale the global business and better serve customers,” the release quoted Shashi Kiran Shetty, chairman, Allcargo Logistics, ECU Worldwide, and Gati Ltd as saying.

This agreement expands ECU Worldwide’s service network and global reach further, adding new geography and specialised rail freight consolidation services to expand further across Europe.

This partnership will help better serve customers who are looking at flexible and time-bound logistics solutions in the Nordic region, said Allcargo.

Shares of Allcargo Logistics were up 2 percent from previous close on BSE today at Rs 194 per share. The company last year had announced its plans to delist from the stock market.