PSA acquires Vietnamese logistics company Sotrans

Singapore terminal operator PSA International has acquired a strategic minority stake in Vietnamese logistics company Sotrans.

PSA acquired a strategic minority stake in SOTRANS Group(” STG “) from majority shareholder Indo-Trans Logistics(ITL) through its wholly-owned subsidiary “PSA Cargo Solutions Vietnam Investments”. No figures were given, but local media reported the deal was worth about $55 million and bought nearly 25 percent of Sotrans’s capital.

Founded in 1975, STG is a leading logistics provider in Vietnam with a reputation for providing reliable and efficient supply chain solutions. STG has three pillar businesses within the Group, each held by a subsidiary: (i) Ports/Inland Container Yards (ICDs) and barges; (ii) Freight forwarding and contract logistics and (iii) Transportation of heavy goods and project goods.

The collaboration between PSA and ITL is driven by STG’s strong presence in Vietnam and its local expertise in logistics, ports, barges and project cargo, And PSA’s global expertise in global Marine, rail and inland terminal service networks, distribution parks, warehouses, ancillary operations in logistics and Marine services, comprehensive digital solutions, and end-to-end supply chain services.

Tan Chong Meng, PSA Group Chief Executive Officer, said: “This latest investment in Vietnam strengthens our service network in the region and is in line with our desire to be a global supply chain coordinator and sustainable trade enabler. With its solid foundation and strong growth potential, Vietnam is poised for further economic development, and we are excited to be able to work with like-minded partners to expand and deepen our involvement in the country through this latest collaboration.”

Mr Zulkifli Bin Baharudin, executive chairman of ITL, said: “PSA’s acquisition of a strategic stake in SOTRANS represents a vote of confidence in ITL and an opportunity for us to leverage PSA’s global network to maximise the growth potential of Vietnam’s port and Marine industry.”

Mr Ben Anh, chief executive officer of ITL, added: “ITL is very pleased to have PSA as a strategic partner of SOTRANS to grow our ports and logistics to become a national champion. By partnering with PSA, a leading port operator with a long history and strong network across the globe, SOTRANS will strengthen its position and we believe we can provide better service and connectivity to our customers in Vietnam.”