Invesco Real Estate has agreed to acquire a portfolio of core logistics assets in China from Warburg-backed e-Shang Redwood (ESR).
Through the joint venture deal, Invesco’s real estate division will acquire a majority stake in ESR’s portfolio.
ESR will hold an equity interest in the portfolio and will serve as project and property manager of the assets by partnering with the asset management team of Invesco.
The deal, which marks the first joint venture on stabilized assets for ESR, will enable the firm to recycle capital for developing its growth.
The transaction, which also represents Invesco’s first investment in China’s logistics real estate sector, will be closed by the end of October, 2017.
ESR co-CEO and co-founder Jeffrey Shen said, “Invesco’s global capabilities and reputation combined with ESR’s pan-Asia logistics expertise create a much stronger platform for our logistics real estate efforts in the region.
“In addition to this China transaction, we see many other ways to cooperate across the region with the goal of creating long-term value for our shareholders and investors.”
ESR offers logistics facilities to third-party logistics providers, e-commerce companies, bricks-and-mortar retailers, cold-chain logistics providers and industrial companies. The firm is supported by APG, CPPIB, Goldman Sachs, Morgan Stanley, PGGM and Ping An.
In the Asia-Pacific region, the firm owns around 9m across China, Japan, Singapore, South Korea and India. The company has its capital and funds management offices in Hong Kong and Singapore.
Invesco Real Estate, a subsidiary of Invesco, was established in 1983 and has a workforce of 455. The firm operates 21 offices across the U.S., Europe and Asia.
CEVA Logistics has secured a delivery contract from French multi-national retailer Carrefour.
Under the contract, CEVA will deliver soft drinks and dried products to around 60 stores each day in Paris.
The firm will also manage reverse logistics, removing packaging and cartons post-delivery for Carrefour.
CEVA will operate from its 36000m2 facility, which is situated in the proximity of the Charles de Gaulle airport.
Recently, CEVA has inaugurated a 7000m2 warehouse facility for healthcare and beauty products to aid the new parapharmacy concept of Carrefour. The new warehouse, which will offer 80 job opportunities, is located near the southern city of Reims.
The facility will be extended depending on the new parapharmacy business, which is included in the Carrefour network.
CEVA Logistics France managing director Robert Plent said: “Key to the success is to understand the way Carrefour and the stores operate. We permanently adapt our processes in order to deliver the best value to the stores. They like the entrepreneurial spirit and a swift decision-making process and this means we can design solutions for them which can be effective immediately.
“This includes challenging each other with concepts and ideas which will improve their business for the long-term. It also opens the potential to introduce other value-added services in the future”.
In July 2017, the firm secured a three-year contract to provide warehouse and distribution services for UK-based assisted living products provider Oak Tree Mobility. The firm has also acquired logistics operations of Italy-based Mondadori in books and retail businesses.
Kerry Logistics recently announced the Group’s interim results for the six months ended 30 June 2017.
Turnover surged by 31% to HKD13,705 million (2016 1H: HKD10,461 million)
Core operating profit increased by 10% to HKD1,019 million (2016 1H: HKD928 million)
Core net profit went up by 5% to HKD576 million (2016 1H: HKD548 million)
Profit attributable to the Shareholders rose by 11% to HKD788 million (2016 1H: HKD709 million)
Integrated Logistics (‘IL’) business recorded a segment profit of HKD884 million (2016 1H: HKD799 million), which represents a lift of 11%
International Freight Forwarding (‘IFF’) business achieved a 7% increase in segment profit to HKD222 million (2016 1H: HKD208 million)
Interim dividend of 8 HK cents per share recommended
William Ma, Group Managing Director of Kerry Logistics, said, “2017 1H has been another challenging period. Global demand stalled in Q1 and our cargo volume was at a low level in January and February. Nevertheless, the temporary slowdown in Q1 reversed as the world economy gradually stabilised with cyclical recovery starting from Q2. Supported by strong logistics volume growth in Asia and sound performance in the Americas, the Group’s performance and earnings have shown considerable improvements since Q2. Against this backdrop, for 2017 1H, Kerry Logistics recorded a 31% growth in turnover and a 10% growth in core operating profit. However, core net profit only reported a 5% growth due to the unsatisfactory performance of our investments in associates, which reported a 52% year-on-year decrease in contribution.”
In 2017 1H, Kerry Logistics continued to adhere to the global development strategy of capturing opportunities brought forth by China’s Belt and Road Initiative. The new subsidiary Globalink Logistics, with operations spanning across Commonwealth of Independent States countries, added nine countries to Kerry Logistics’ global network. They include Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, Turkmenistan, Georgia, Armenia, Azerbaijan and Ukraine. Meanwhile, another new member, Lanzhou Pacific Logistics, allows Kerry Logistics to offer multimodal solutions to customers within its global network.
The development of an integral overland transportation network with land-bridge connectivity demonstrates Kerry Logistics’ commitment to providing new options and cost-efficient solutions to customers.
The IL division delivered an 11% growth in segment profit in 2017 1H. The overall performance in Greater China remained flat. In Hong Kong, the logistics business delivered continued growth as it benefitted from contribution through new business and customer wins, while the warehousing business maintained growth after a change in client mix despite rental pressure. Weak performance of some of the key accounts in Mainland China adversely affected the Group’s business performance. Although the increased operating cost under the new labour law added pressure on 1H earnings, Taiwan’s performance is expected to improve in 2017.
The overall IL business in Asia remained strong in 2017 1H, driven by the enhancement of the Group’s service capabilities in ASEAN.
The IFF division continued to achieve significant growth in 2017 1H, fuelled by the substantial contribution by APEX in the US. As a result of the alliance shuffle, carrier consolidation and reduction in capacity, freight rates increased in 2017 1H, causing the profit margin of the IFF business to narrow, despite an increase in volume. In Europe, the acquisition of Tuvia Italia S.p.A and the launch of the new sales office in Poland further strengthened the Group’s global IFF sales and operations network.
All projects in the pipeline progressed as planned. In Thailand, phase four expansion of Kerry Siam Seaport is expected to complete in 2018. Construction of three logistics facilities in Shanghai and Wuxi, Mainland China, and Phnom Penh, Cambodia were completed in 2017 1H. Inland ports in Yangon and Mandalay, Myanmar, together with three other facilities in Changsha and Wuhan, Mainland China, and Guanyin, Taiwan are under construction.
In March 2017, the Group entered into a share purchase agreement to divest its entire 15% interest in Asia Airfreight Terminal Company Limited to Holistic Capital Investment Limited, a subsidiary of Hong Kong Airlines Limited. The completion of the transaction is subject to certain conditions precedent, which, the Directors believe, will be satisfied in 2017 Q3. Going forward, the Group will continue to consider divesting non-core assets and businesses.
DHL Express, has once again been appointed by the Hong Kong Trade Development Council (HKTDC) as the official logistics partner for CENTRESTAGE ELITES 2017, the opening gala show at Asia’s premier fashion event CENTRESTAGE this year. The headline event CENTRESTAGE ELITES takes place on 6 September 2017 at the Hong Kong Convention and Exhibition Centre (HKCEC).
DHL Express is responsible for seamless and secure deliveries of unique showpieces from renowned Asian fashion talents, including designers Kain Picken and Fiona Lau of Hong Kong label FFIXXED STUDIOS, and Korean fashion pioneer Juun. J. DHL will leverage its global network to ensure smooth and efficient delivery of these showpieces to the fashion runway.
As part of its long-standing partnership with HKTDC, DHL is also supporting this year’s Hong Kong Young Fashion Designers’ Contest 2017 (YDC) held on 9 September by delivering showpieces from the VIP judge — Japanese designer Mug — who founded one of Tokyo’s most sought-after fashion labels G.V.G.V. — to the fairground.
Herbert Vongpusanachai, Senior Vice President and Managing Director, Hong Kong and Macau, DHL Express, said, “We are honored to partner with HKTDC in support of both eminent and young fashion designers in the region. This appointment is a remarkable vote of confidence in our performance and our efforts to leverage our international network to better serve clients’ business needs across industries, including the fashion industry which is fast-paced in nature. We are well-positioned to support the time-sensitive needs of both small fashion boutiques and multinational retailers that require reliable logistics support.”
Sophia Chong, Assistant Executive Director, HKTDC, said, “We are delighted to have DHL providing reliable logistics support to our annual flagship fashion event. We are confident that DHL Express will provide fast and seamless deliveries of the exquisite and delicate showpieces for our global participants. DHL is a trusted partner with deep understanding of the unique needs of the fashion industry.”
Held from 6 to 9 September 2017, CENTERSTAGE is an internationally acclaimed fashion trade show in the region, designed to promote Asian and international fashion brands.
The ceremony follows the 50-year concession the company won last year from the Government of Ecuador to build a facility with 750,000 TEU (twenty-foot container equivalent) of capacity to fuel the country’s economic growth and connect it with international markets.
The $500 million initial investment (Phase 1) includes the purchase of land, dredging of a new access channel, a 20-kilometre access road and a 400-metre berth equipped to handle containers and other cargo. Total investment will be over $1 billion for the entire project with thousands of jobs during construction, close to 1,000 jobs during operations, along with plans to develop a logistics zone to create a regional trading hub.
While work began in July on nearby access roads, construction of the port, which is located 65 kilometres from the country’s main business city of Guayaquil, is expected to take around 24 months to complete. Additionally, a 1 square kilometre logistics and industrial park, marked as a Special Economic Development Zone, will be developed adjacent to the port.
DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem, said, “This is an important landmark in Ecuador’s growth story – we’re celebrating today the first public-private partnership that will benefit local economy and change forever the way it trades with the world. The port has been designed to serve the growing needs of global markets – something we’ve been able to witness first-hand with our 78 terminals around the world – and will dramatically improve the global competitiveness of Ecuadorian exporters.
“President Lenín Moreno has a great vision for his people and we’re proud to be part of his development plans for this resource rich country and its industrious workforce.”
DP World Posorja General Manager Jorge Velásquez, said: “DP World is always on the lookout for opportunities that help meet the growing demands of the global supply chain. This facility will help Ecuador become an important player in regional and global trade and its deep drafts and quay lengths will handle Post-Panamax vessels to complement Guayaquil and other nearby terminals. Its navigation channel is designed for ease of access, allowing large capacity ships to call at our shores.”
Air Arabia recently announced strong financial results for the second quarter of this year ending June 30, 2017 as the Middle East and North Africa’s first and largest low-cost carrier continued to deliver robust and sustained performance.
Air Arabia’s financial results for the second quarter ending June 30, 2017 exceeded analysts’ expectations and registered a net profit of Dh158 million, an increase of 21 percent compared to the Dh131 million reported for the same period last year. The company’s turnover for the second quarter of 2017 increased to Dh906 million, compared to Dh894 million in the corresponding period last year. Air Arabia served over 2.05 million passengers in the second quarter of 2017, while the average seat load factor – or passengers carried as a percentage of available seats – for the same quarter stood at an impressive 79 percent.
Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia said, “Air Arabia’s strong second quarter financial performance is a testament to the carrier’s operational efficiency and robust growth strategy. Despite the continuous pressure on yield margins, which is driven by the market and the economic environment, Air Arabia managed to register a solid second quarter net profit backed by the carrier’s cost control measures, operational efficiency and combined with its momentum growth”.
Air Arabia’s net profit for the first six months of 2017 stood at 261 million, up 7 percent compared to the corresponding period of 2016 while the turnover for the first six months of this year reached Dh1.716 billion. The low-cost aviation pioneer served over 4.1 million passengers in the first six months of 2017 while the average seat load factor – or passengers carried as a percentage of available seats – for the same period stood at an impressive 79 percent.
“The first half of this year have seen Air Arabia continue its robust growth by launching new routes and increasing capacity across its operating hubs while remaining focused on driving operating cost margins lower by the day” Al Thani continued.
Air Arabia received two new Airbus A320 aircraft in the first half of 2017 ending June 30 and added 12 new routes from its five operating hubs in the UAE, Morocco, Egypt and Jordan. Air Arabia currently serves a global destination network of 130 routes across the world.
Dubai International (DXB) recorded its busiest month on record for passenger traffic in July with over 8 million passengers, according to the monthly traffic report issued by operator Dubai Airports recently.
Passenger numbers in July totalled 8,065,789 compared to 7,616,792 handled in July 2016, a robust growth of 5.9 percent. DXB welcomed 51,120,057 passengers during the first seven months of the year, up 6.2 per cent compared to 48,124,043* passengers, recorded during the same period last year.
South America was the fastest growing region in July with traffic surging 59 per cent, followed by Asia at 20 per cent – with China and Thailand as top contributors to traffic from the region, Eastern Europe at 16.3 per cent and Africa, which grew by 9.1 per cent.
India retained its position as the top destination country with 1,028,508 passengers, followed by the UK (610,151 passengers), and Saudi Arabia (573,170 passengers). The most popular destinations served from DXB by traffic volume were London, followed by Kuwait, Mumbai, Bangkok and Riyadh.
Flight movements during July reached 34,181, down 4.7 percent compared to 35,8864* movements recorded during July 2016. Year to date flight movements totalled 240,179 compared to 243,832* movements recorded during the same period last year, a contraction of 1.5 per cent. With DXB’s ratio of wide-bodied aircraft continuing to drive airport efficiency, passengers per movement peaked to a record high of 243 during July, up 10.1 per cent compared to 220 in July 2016.
DXB recorded a surge in cargo with freight totaling 213,258 tonnes in July, up 5 per cent compared to 203,153 tonnes recorded during the corresponding month last year. During the first seven months of 2017, DXB handled a total of 1,516,169 tonnes of cargo compared to 1,485,177 tonnes during the same period in 2016, an increase of 2.1 per cent.
Gulf Air, recently launched a new codeshare agreement with Oman Air, the national carrier of the sultanate of Oman, that sees the airlines’ combined frequencies between Bahrain and Muscat increase to 6 daily flights.
Mr. Ahmed Janahi, Gulf Air Chief Commercial Officer, commented on the agreement, “This codeshare reflects Gulf Air’s consistent drive to offer our customers attractive options to fly to popular travel destinations. With this agreement we are not only increasing our flight frequencies to and from Muscat but also giving Muscat-based passengers an expanded range of connections with Gulf Air via Bahrain International Airport to various destinations across our network. On this occasion, we thank Oman Air for sharing our commitment and vision, which I am sure will allow us to continue to reinforce the longstanding relations between the Kingdom of Bahrain and the Sultanate of Oman – helping strengthen tourism and commercial ties.”
Abdulrahman Al Busaidy, Deputy CEO and Chief Commercial Officer, of Oman Air commented, “Oman Air is very happy with this codeshare agreement with Gulf Air, which is a strategic and important partner for Oman Air. Through this codeshare, Oman Air offers its guests a combined frequency of six daily flights. The new Muscat International Airport is also due to open soon, which will give our Bahrain-based guests an exciting opportunity to connect to our global network through a world class facility. Our guests can also benefit from a range of destinations connected through this codeshare by both the airlines, providing them with greater choice, convenience and a seamless travel experience.”
This new codeshare provides customers with additional frequencies on the popular route while also giving passengers to Bahrain enhanced flight connectivity possibilities with Gulf Air to various destinations in Europe, Asia and the Indian Subcontinent and, in tandem, giving passengers to Muscat enhanced flight connectivity possibilities with Oman Air to various destinations across its network. Bahrain’s national carrier currently serves 42 cities in 25 countries, spanning three continents – including Tbilisi, Georgia, which launched on 22nd June 2017. The airline operates double daily flights or more to 10 regional cities in addition to select destinations in the Indian Subcontinent and Europe, from its hub at Bahrain International Airport. The codeshare flights connecting Bahrain and Muscat are currently available for sale and Gulf Air tickets can be purchased via the airline’s official website gulfair.com, its 24-hour Worldwide Contact Centre on (+973) 17373737 in Bahrain, or any Gulf Air sales offices and approved travel agencies.
Emirates Flight Training Academy, the state of the art flight training facility being developed by Emirates to respond to the global aviation industry’s need for pilots, has taken delivery of its first two Cirrus SR22 G6 training aircraft in Dubai. These are the first of the 22 single-piston engine Cirrus aircraft that have been ordered by the Academy to train ab initio pilots.
The two Cirrus SR22 G6 aircraft, A6-CTA and A6-CTB, landed in Dubai following a transatlantic journey spanning over 13,000 kilometres. Given the size of the aircraft and other restrictions including the size of the fuel tanks and range, the journey from Cirrus’ manufacturing facilities in the USA to Dubai had to be split into multiple segments.
Upon completion of manufacture, the two aircraft were flown from Duluth, Minnesota to Knoxville, Tennessee – the location of Cirrus’ aircraft delivery centre. Once at the delivery centre, the aircraft were inspected and teams from Cirrus and Emirates Flight Training Academy went through a series of pre-flight appearance, functionality checks and test flights. The two Cirrus planes then embarked on an 11-stop transatlantic journey transiting through 10 countries flying an average of over 5 hours a day.
Flying out from Knoxville, A6-CTA and A6-CTB stopped at Portsmouth, New Hampshire, USA followed by Sept Iles and Iqaluit in Canada. From Iqaluit the two aircraft set out to cross the Atlantic Ocean in two stretches, stopping first at Nuuk in Greenland, then at Reykjavik in Iceland and completing the transatlantic sector at Wick in Scotland. These flights were also the longest segments in the aircraft’s journey from the US to Dubai.
Once in Europe, the two aircraft made their way from Scotland to Sywell in Northamptonshire, England and from thereon to Venice, Crete, Aqaba, Bahrain and finally to Dubai. All the flights were done in daylight and the two aircraft flew in loose formation throughout the entire journey allowing for easier air traffic clearances.
Watch a 360 video of the first two Cirrus aircraft landing in formation at Dubai International Airport.
The Cirrus SR22 G6 aircraft will form the backbone of the training fleet of the Emirates Flight Training Academy. The aircraft has a modern composite airframe; two large 12” flight displays; a flight management system keypad controller and an integrated engine indication and crew alerting system. The aircraft has a range of up to 1,207 nautical miles (1,943 kilometers) at speeds of 183 knots (340Km/H) TAS True Air Speed.
In addition to the 22 Cirrus SR22 G6 aircraft, Emirates Flight Training Academy has also placed an order for five twin-jet Embraer Phenom 100EV aircraft, becoming the first flight training organization in the world to use the Phenom 100EV platform for training cadets.
The Emirates Flight Training Academy, located near Dubai World Central (DWC) airport in Dubai South, is designed to be one of the most advanced flight training facilities in the world. Scheduled to open in November 2017, the facility will be spread over an area of 200 football fields and will include ground school classrooms, ground based simulators, a young and modern training aircraft fleet, a 1,800 sq. m dedicated runway, an independent air traffic control tower and a maintenance center in addition to accommodation and recreational facilities for cadets.
Under the agreement, Etihad Airways customers are able to enjoy convenient connections via Rome and Madrid to Buenos Aires (EZE) and onwards to nine other popular Argentinian destinations – Córdoba (COR), Mendoza (MDZ), Rosario (ROS), Iguazú (IGR), Salta (SLA), Mar del Plata (MDQ), Bariloche (BRC), Trelew (REL) and Ushuaia (USH).
In turn, Aerolíneas Argentinas guests can have access to Etihad Airways’ network of over 100 destinations from its Abu Dhabi hub via the Italian and Spanish capitals.
Mohammad Al Bulooki, Etihad Airways Executive Vice President Commercial, said, “This codeshare demonstrates the importance of Argentina as a vital travel market for Etihad Airways in Latin America given the growing tourism, cultural and business opportunities that exist between the UAE and Argentina.
“We wish to give travellers flying Aerolíneas Argentinas the opportunity to enjoy the acclaimed service and hospitality for which Etihad Airways is renowned throughout the world. This codeshare will make the experience that much easier.”
Diego Garcia, Aerolíneas Argentinas Chief Commercial Officer, said, “This is a very good opportunity to consolidate and increase our offer to one of the most important hubs in the Middle East. It also allows us to improve our load factors, optimise the use of the fleet and strengthen the image of Aerolíneas Argentinas in the Asian market. We hope that this agreement will also be the gateway for many tourists to visit some of the most attractive landmarks in our country.”
Codeshare agreements offer customers countless benefits, such as baggage check-in to their final destination and extra assistance during connections. Members of both airlines’ loyalty programmes – Etihad Guest and Aerolíneas Plus – will soon be able to earn and redeem miles on the codeshare flights.
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