Connect with us

Customs

A.P. Moller – Maersk to acquire European specialist KGH Customs Services

Published

on

A.P. Moller - Maersk to acquire European specialist KGH Customs Services. Image: Maersk
Listen to the story (FreightComms AudioPost)

Maersk announces that it has reached an agreement with Bridgepoint Development Capital to acquire KGH Customs Services, a Sweden-based specialist in trade and customs management services in Europe. This will further enhance Maersk’s capabilities as an integrated container logistics company, offering end-to-end supply chain solutions to its customers.

With its specialised expertise across freight modes (air, ocean, land) and deep knowledge in selected industries, combined with innovative technology, KGH will significantly improve Maersk’s overall offering within customs services. KGH has a strategy focused on digital solutions and technology as an enabler for a more seamless customer experience, which also corresponds with Maersk’s own digital transformation journey.

Vincent Clerc, CEO of Ocean & Logistics at A.P. Moller – Maersk sees KGH as a perfect fit to Maersk offerings within logistics and services as well as another key building block in its strategic ambitions.

“There are no end-to-end solutions without customs clearance. With KGH, we will not only be able to strengthen our capabilities within customs services and related consultancy, but also reach more of our customers in Europe through a larger geographical footprint and digital solutions that will enhance our ability to meet our customers´ end-to-end supply chain needs. We achieve all this in one go instead of having to build our expertise through multiple acquisitions,” says Vincent Clerc, CEO of Ocean & Logistics at A.P. Moller – Maersk.

Based in Gothenburg, Sweden, KGH is a well-known and respected partner to a wide range of authorities, providing valuable consulting and advice, most recently in the connection with Brexit, as advisors to various authorities in the EU and the UK. KGH has in the past years achieved double-digit annual growth resulting in a revenue of approximately SEK 890m in 2019 (USD 95.5m), recurring EBITDA of approximately SEK 160m (USD 17.2) and an EBITDA margin of approximately 18 percent. KGH has 775 employees and a yearly business of 1.98m clearances.

“With Maersk, we will have a long-term home with a company that share our values. By joining forces, we will be able to continue to build on the great success our teams have achieved, and at the same time play a key role in a combined entity providing a range of different services within the transportation and logistics industry. Customs services is an essential part of our customers’ end-to-end needs which we in unison with Maersk will be able to provide with seamlessness and global reach,” says Lars Börjesson, CEO of KGH Customs Services.

The acquisition of KGH makes Maersk an attractive partner for its customers operating in individual countries, as well as for those looking to combine several geographies under one service provider. With the acquisition of KGH, Maersk will have a solid platform for growth in customs services in Europe with own setups operating in 22 European countries with a total of 2.38m clearances on a yearly basis, 960 specialised employees and a combined turnover of SEK 1.02B (USD 109.4m).

Maersk will acquire KGH for a consideration of SEK 2.6B (USD 279.0m) on a cash and debt free basis equivalent to a multiple of 16.3x 2019 EBITDA before synergies, excluding an earn-out component contingent on future Brexit performance. When ramped up, annual EBITDA synergies from the combination are expected to amount to approximately SEK 50m-75m (USD 5.4m-USD 8.0m).

The closing of the acquisition is subject to customary regulatory approvals. Until then, Maersk and KGH remain two separate companies and thus will do their business as usual.

Customs

Dubai Customs launches Siyaj (Fence) Initiative to foster border security, facilitate trade

Published

on

Dubai Customs launches Siyaj (Fence) Initiative to foster border security, facilitate trade. Image: Wikimedia/ Dubaicustomswiki
Listen to the story (FreightComms AudioPost)

As part of their relentless efforts to protect the society and secure Dubai’s ports, Dubai Customs launched Siyaj (Fence) initiative: the first integrated control 24/7 system in the world. The new system is based on a number of sophisticated AI technologies, rapid intervention teams that work around the clock, drones, and the K9 sniffing dog unit.

The initiative will enhance Dubai and the UAE’s security and help protect the society from the hazards of illegitimate shipments while facilitating trade and supporting the global supply chain.

The Siyaj initiative features integrated unites such as the advanced technological unit system and the highly qualified skilled team unit. All is based on a deep learning central data base that is regularly fed with updated information. And there are advanced inspection systems, surveillance cameras and devices. The system also includes a vessel equipped with advanced technologies to track and control ships before they arrive at the port. The rapid intervention teams are available 7 days a week and coordinate with the intelligence department to take action when there is a report of any suspicious goods.

“We feel proud today that our borders are more secure and our trade is streamlined following the wise vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai,” said HE Sultan bin Sulayem, DP World Group Chairman & CEO and Chairman of Ports, Customs and Free Zone Corporation. “This initiative is an embodiment of the team spirit and the honest efforts that everyone at Dubai Customs always strives to maintain. We hope this initiative adds up to our cumulative work in the field to maintain the leading position the UAE enjoys worldwide.”

Director General of Dubai Customs, Ahmed Mahboob Musabih said: “Dubai Customs plays a vital role in thwarting smuggling of drugs and other illegitimate goods. In this regard, we cooperate and coordinate with the relevant authorities worldwide to intercept any suspicious or hazardous shipments before they enter the country. Customs authorities in the UAE made 4,450 customs seizures in 2019, and this initiative will cement the security efforts following the vision of Dubai Customs of becoming the leading customs organization worldwide supporting legitimate trade. We highly commend the efforts behind this leading initiative which will not only enhance the security of our borders but will also facilitate trade and supply chains.”

On his part, Abdullah Busnad, Executive Director of Customs Inspection Division at Dubai Customs said: “Siyaj Initiative is part of our efforts to maintain security over our borders to prevent any smuggling attempts of illegitimate goods and be able to have full control over trade operations within Dubai’s borders. All intelligence information will be analysed carefully to intercept suspicious shipments and thwart these smuggling illegitimate operations. This will also help streamline the international trade and supply chain.”

Busnad confirmed Siyaj System will be implemented soon in all Dubai’s entry points.

Continue Reading

Customs

CBP officers in Chicago seize $1.41 million in eyeglasses

Published

on

CBP officers in Chicago seize $1.41 million in eyeglasses. Image: CBP
Listen to the story (FreightComms AudioPost)

U.S. Customs and Border Protection officers at the Chicago DHL Express Consignment Carrier Facility Gateway Hub recently seized seven shipments of eyeglasses worth more than $1.41 million.

The shipments arrived in early June claiming duty free status as the glasses were manufactured in Israel. However, the shipments were not manifested correctly and the contents were examined. When the parcels were examined the origin markings did not match the manifest. The country of origins included China, Italy, France and the United States. At this point the shipments were seized for fraud and duty voidance due to intentional country of origin marking misrepresentations on their entry documents.

These shipments were in violation of USC 1304 due to fraudulent markings and seized per 1595a(c).

“This seizure is an example of the outstanding work performed by our CBP officers in identifying shipments that are not in compliance with United States laws which is an important part of the CBP’s mission,” said Ralph Piccirilli, Acting Assistant Area Port Director, Chicago. “Our officers will continue to identify and intercept fraudulent shipments from importers trying to avoid paying a tax in order to protect the United States economy.”

CBP routinely conducts inspection operations on arriving and departing international flights and intercepts narcotics, weapons, currency, prohibited agriculture products, counterfeit goods, and other illicit items at our nation’s 328 international ports of entry.

Continue Reading

Customs

£15 million of cocaine seized by Border Force at London Gateway

Published

on

£15 million of cocaine seized by Border Force at London Gateway. Image: Flickr/ Sludge G
Listen to the story (FreightComms AudioPost)

Cocaine worth more than £15 million has been seized by Border Force officers at London Gateway after it was found hidden within the floor of a container.

The detection was made during an intelligence led search of a 40ft, temperature controlled container that had been shipped from Costa Rica and was carrying a load of bananas. The container was in transit to Germany.

An initial X-Ray scan of the container identified an anomaly within the floor. When officers conducted a physical examination they found that the floor cavity, which would normally be packed with insulation had instead been filled with blocks of cocaine. A total of 380kg of the Class A drug, with an estimated street value of £15.2 million was ultimately recovered in an operation that took 19 hours to complete.

Minister for Immigration Compliance and the Courts Chris Philp said:

Illegal drugs have a significant impact on our society, being the root cause behind countless burglaries, thefts and robberies. They are also used as a commodity by organised criminals linked to violence and exploitation of the vulnerable.This is just one example of the crucial work that Border Force officers do every day to help keep the UK safe. Detections of dangerous Class A drugs such as this are testament to their dedication and expertise.

Border Force Assistant Director Pete Roffey said:

This was a sophisticated concealment and one that is rarely seen in the UK. The smugglers had cut the inner floor, raised it, removed and scraped out the insulation, packed in the drugs and then welded the inner floor back in place. They had left relatively little evidence that the container had been tampered with.

Following the Border Force detection, the seizure was referred to the National Crime Agency.

Border Force officers are the front line in protecting the country and play a key role in detecting illegal immigration, disrupting serious and organised crime and helping to prevent the threat of terrorism. Border Force also protects the UK’s revenue, contributing to the nation’s prosperity and growth.

They use an array of search techniques including sniffer dogs, carbon dioxide detectors, heartbeat monitors and scanners – as well as visual searches – to find well-hidden stowaways, illegal drugs, firearms and tobacco which would otherwise end up causing harm to local people, businesses and communities.

Continue Reading

Popular

Copyright © 2017-18 | FreightComms | Made with ♥ in Singapore