Expolanka North America business grows after port strike
ECONOMYNEXT – Sri Lankan logistics group Expolanka is looking at expanding presence in North America, a market which has become a key revenue driver with business growing significantly , especially after a port strike helped boost air cargo volumes.
The group, now controlled by Japan’s SG Holdings, is looking to widen its reach beyond the Indian subcontinent, Hanif Yusoof, Group Chief Executive said.
“Although we did not expand our global network in the current financial year, we went full throttle to enhance EFL’s visibility in all our key markets, especially in North America and East Asia,” he told shareholders in the firm’s annual report.
These are crucial markets that will likely underpin Expolanka’s next growth phase given that over 70% of world trade takes place in these regions, he said.
“In fact our aggressive client acquisition strategies and premium service propositions have been driving results from these markets, which are fast becoming our top revenue drivers, having recorded year-on-year volume growth in the current financial year.”
Yusoof said the spillover effects of the west coast port strike in the US created a “window of opportunity” to grow EFL’s air cargo volumes, as shippers began to look for alternatives to re-route their cargo.
“Having swiftly capitalised on the situation, freight volumes from the North American trade lane showed a dramatic increase in the current financial year,” he said.
To bolster returns from the Intra-Asia trade lane, Expolanka leveraged on its widespread presence in East Asia to garner freight volumes, particularly from Vietnam and Indonesia, both of which have been gaining ground as major apparel exporters.
In the freight and logistics sector, the group’s emphasis is on high-growth markets, products, and business sectors.
“Consolidating our global position remains a critical priority,” Yusoof said. “In the near term, this would mean extensive brand building to expand the prospects in the USA and East Asia, along with focused efforts to reinforce the presence in the sub-continent, amidst heightened market competition in the region.”
(COLOMBO, July 18, 2016)