Barloworld Logistics, Barloworld's supply chain management subsidiary, has acquired Dubai-based Swift Group and its overseas affiliates for USD70 million.

Swift Group and its affiliates in the Far East, India, UAE, Africa and Germany specialise in logistics solutions and services. Now in its 19th year of operations, Swift has established services between South East Asia and Western Europe and freight logistics solutions for African markets. It has over 600 employees in 46 offices in 20 countries.

The acquisition is expected to catapult Barloworld Logistics into the global arena, especially in the multimodal transport solutions sector.

Paul Stuiver, Barloworld Logistics' CEO, says the acquisition cost is subject to final adjustment based on profit and other warranties to be achieved.

"The skills, networks and clients of Swift and its affiliates will enable Barloworld Logistics to provide multimodal solutions in the global logistics arena.

"By expanding our freight management services through their networks, we will become a significant player in the supply chain network that stretches from Asian manufacturing to Western Europe and African customers."

Stuiver sees significant growth potential as Swift has an extensive African network which offers Barloworld Logistics the opportunity to sell additional supply chain services into these markets.

Muhannad Al Ashram, managing director of Al Ashram Enterprises, Barloworld Logistics' Dubai partner, says the acquisition will consolidate the companies' logistics activities in Dubai, an "important global logistics and trans-shipment hub".

"Most of the existing multimodal market originating from South East Asia is trans-shipped through the UAE," he says.

Swift Group chairman and founder Issa Baluch calls the acquisition a "milestone" for the group's staff, management and stakeholders to be recognised as having "sound strategy" and having the potential to grow in the Barloworld group.

"I am extremely happy for this organisation and I believe we have a bright future ahead in pursuit of our corporate goal to serve the world from Dubai."

Swift is one of the first companies to reserve space in Dubai Logistics City for a purpose-built logistics centre and airside facility at the new World Central Airport to provide smooth air connectivity for shipments. It currently has 18,000 pallet positions at its warehouses in the Jebel Ali Zone in Dubai.