Neptune Orient Lines Ltd (NOL), the world's sixth-biggest container shipper, is looking at possible acquisitions to expand its operations, the Financial Times reported on Monday. In an interview with the newspaper, NOL's CEO David Lim said he would be interested in purchasing a rival shipping line if it was a good strategic fit with NOL's existing operations, which are mainly trans-Pacific Asia-North America and Asia-Europe shipping.
"I would look for somebody else who would add to our east-west trades, rather than diversify away from those trades," Lim was quoted as saying.
Lim also said with an acquisition of a rival liner it had to be possible to integrate the target's operating culture and philosophy, IT and other operating systems with NOL's.
Lim said acquisitions in logistics might include investing in facilities to handle and distribute containers.
"If there was an inland container terminal that was for sale in a particular region and it fitted well with our operations, we would consider buying it."
Lim was quoted as saying NOL, Singapore's largest shipping firm, would look at buying new, larger ships able to carry more than 8,000, 20-foot containers.
"In the longer term, we will also be looking at buying the bigger ships. It's a question of when, not if."
Looking at the overall industry, Lim said that similar to past cycles, container shipping could eventually face a downturn caused by over-supply of ships.
Last month NOL, which is 68 percent owned by the Singapore government, forecast strong business in 2005 after beating market expectations with a 165 percent rise in quarterly profits.
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