TVS Logistics takes majority stake in Australia based ‘Transtar’ through its Singapore JV arm

The move would significantly enhance its Freight Forwarding capability – Transtar would further strengthen TVS Logistics’ base in South East Asia

Chennai, October 08, 2015: TVS Logistics Services, India’s leading third party logistics (3PL) service provider, today announced that, through its JV arm in Singapore – ‘TVS Asianics Supply Chain Solutions,’ it has reached an agreement to take a ‘majority stake’ in the ‘Transtar International Freight’ – Australia based integrated transportation and supply chain solutions provider throughout the Asia region. With this move, TVS Logistics, which already has its presence in South East Asian countries like Singapore, Thailand and China, would mark its entry into Australia. Post the deal, Transtar will continue to be headquartered in Melbourne (Australia) and Mr. Hank Meyer, CEO and founder will continue to remain its CEO.

The deal will help TVS Asianics to become a specialized player in International Freight Forwarding and provide end-to-end solutions for importers and exporters doing business throughout Asia. Further in this direction, TVS Logistics will be moving its Indian Freight Forwarding business subsidiary – TVS Dynamic Global Freight Services – to TVS Asianics to work as a consolidated division in Freight Forwarding business, however, the move is subject to RBI’s approval. TVS Asianics is headed by James McAdam, who is also the CEO and Partner operating out of Singapore.

Announcing the decision, Mr. R. Dinesh, Managing Director, TVS Logistics Services Ltd., said, “Transtar is an important business addition for TVS Logistics as it not only strengthens our presence across Asia Pacific region but also completes our service offering by including end-to-end Freight Forwarding solutions. We are now a globally relevant player with unique differentiation which along with our Global presence and synergies will help our customers to truly experience World class solutions from us.”

Commenting on the deal, Mr. Hank Meyer, CEO and Founder, Transtar, said, “We are delighted to partner with TVS Asianics and become part of the TVS Logistics global network. We are excited about the ability to integrate into TVS LSL’s expanding international network and significantly expand the scope of our end-to-end logistics products for our customers.”

Says, Mr. James McAdam, CEO & Partner, TVS Asianics Supply Chain Solutions, “The addition of Transtar’s extensive international freight forwarding services to our existing domestic oriented logistics products and capabilities throughout China and Southeast Asia will greatly enhance our service offering to our customers. We look forward to work alongside Hank and his team to continue growing the business and create a unique Asia-focused logistics capability.”

TVS Logistics in the past had acquired companies in the UK, Europe and in the USA for both capabilities and customers. It now will have its focus on Asia through TVS Asianics and with the addition of Transtar, Asia will become a significant market for TVS Logistics where it can offer the capabilities it acquired from other markets.

Transtar, with an annual revenue of INR 850 crores, (USD 130 million) is one of Australia’s largest privately owned international logistics companies, strategically located in 10 of the top 12 container ports of the world. Transtar has more than 70% of its revenues coming from Asian markets and it has market leading presence in certain key trade lanes in Asia.

Transtar’s established network of 16 offices throughout Asia and its sophisticated IT management systems allows it to provide a unique service offering whereby it controls and manages the movement of cargo across the entire supply chain whilst providing real time visibility to its customers.

Another important aspect of Transtar’s business proposition is its Wuhan back office in China. Wuhan is a wholly-owned and operated division of Transtar International Freight (TIF) that operates with fulltime professional employees who are engaged in providing a variety of shared-support services such as finance, accounting, bill of lading, documentation, customer services and reporting activities across TIF’s global operating network. The team is connected through TIF innovative technology platform and operates in real-time to support TIF’s customer requirements.

Transtar has also built a significant warehouse footprint in Australia and New Zealand. Transtar’s warehouses have a current storage capacity of 13,000+ pallets (including cross dock). The warehouses operate in a narrow aisle/high capacity configuration with emphasis on maximum storage and highest yield. Aside from 3PL activity, there is significant cross dock activity, in addition to handling group age containers from Transtar’s stations in Asia.

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