ACFS and Patrick Establish a new logistics joint venture
10th April 2015
ACFS Port Logistics (ACFS) has today announced, that it has agreed to enter a new joint venture with Patrick Port Logistics to bring together the respective metropolitan port logistics operations of both businesses across Australia. This will bring together the combined business entities, involving all metropolitan transport, warehousing, container depots, and empty container parks.
Both ACFS and Patrick will each own a 50% equity interest in the new joint venture and the proposed joint venture will be reviewed by the ACCC.
Both ACFS and Patrick have complementary geographic operations, volumes, and services. Arthur Tzaneros, ACFS’ Managing Director, said “The joint venture will significantly improve ACFS’ footprint of strategic site locations, which will now cover all major container Ports around Australia. The national fleet will be significantly increased, with the addition of a national network of empty container parks, we can now offer our clients an integrated end to end supply chain solution.”
ACFS has a current presence in all eastern states, and is a market leader in the Port of Sydney. ACFS will also be providing the joint venture with additional key strategic facilities located in the Port of Brisbane (adjacent to the Patrick Terminal) which is currently under development, and in Fremantle, where the site is ideally located on the Port and adjacent to the North Quay Rail Terminal.
Patrick is currently a national provider of landside logistics, with significant strength in the largest volume Port of Melbourne. In addition, Patrick provides the new entity with a network of empty container parks in all eastern states, which will further complement the soon to be developed empty park facility in Fremantle. These additional services will enable the new joint venture to provide shipping lines with an alternative national provider.
Terry Tzaneros, ACFS Chairman, said “The newly created joint venture fast tracks the national expansion plan for the group, with a significant joint venture partner in Asciano. This will further enhance the services offered to our loyal and strong customer base, and also those potential new customers in the market place.”
The ACFS and Patrick joint venture will be headquartered in Sydney, with senior management of each respective business combining, to create a new and strengthened management team. Arthur Tzaneros, current Managing Director of ACFS has been appointed as the new CEO of the joint entity.
KPMG Corporate Finance acted for ACFS as lead financial advisor on the transaction.