DP World has finalized its acquisition of Savan Logistics, the operator of Savannakhet dry port in Laos, marking its entry into the country’s burgeoning logistics sector. Savan Logistics has been managing the dry port since 2016, strategically positioned at the western end of the East-West Economic Corridor, spanning Laos, Cambodia, Myanmar, Thailand, and Vietnam.
Covering an expansive area of 140,456 square meters, the dry port serves as a pivotal hub for regional cargo owners and logistics firms, facilitating seamless connectivity across various supply chains along the corridor. Moreover, it offers extensive warehousing facilities spanning 23,000 square meters, including an 11,000 square meter bonded area.
DP World’s acquisition extends beyond dry port and warehousing operations to encompass cross-border transport, freight forwarding, and integrated logistics solutions. Glen Hilton, CEO & Managing Director, Asia Pacific, DP World, emphasized the strategic significance of the move, highlighting the dry port’s proximity to DP World’s existing portfolio of ports and terminals along the East-West Economic Corridor in Thailand and Vietnam.
The company aims to leverage its expertise and resources to enhance the dry port’s infrastructure, leveraging its geographical advantages to catalyze trade and economic growth in the region. Notably, DP World’s initiative aligns with Laos’ economic trajectory, with the Asian Development Bank forecasting a 4% growth in 2024, supported by government initiatives and partnerships.
Laos’ upcoming chairmanship of the ASEAN summit is expected to further enhance its international exposure, fostering investment opportunities and cross-border cooperation with neighboring countries. DP World’s recent collaborations with Malaysia’s Sabah Ports Sdn. Bhd and Asian Terminals Inc (ATI) in East Malaysia and the Philippines respectively underscore its commitment to expanding its footprint in the Asia-Pacific region.
