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Maersk Continues Logistics Growth with Warehouses in India and Brazil

Maersk logistics expansion
The new warehouse in India is the fifth Maersk added this year (Maersk)

Published Sep 7, 2022 6:48 PM by The Maritime Executive

A week after acquiring the Pan-Asian logistics company LF Logistics, Maersk this week inaugurated new warehouses in India and Brazil. It is part of the company’s ongoing efforts to use the profits from the shipping company to transform its business model into an integrated logistics company. With the expansion of warehousing and distribution facilities, Maersk reports it is strengthening its position by providing a larger array of services as an integrated provider to its customers.

In India, the new facility opened in Bhiwandi, on the outskirts of Mumbai. It is strategically on the Mumbai-Nashik highway, providing excellent connectivity to manufacturing hubs and the Jawaharlal Nehru Port in Mumbai. The new facility has over 250,000 sq. ft., and, including the warehouses from the recently completed acquisition of LF Logistics, Maersk now has a total of over 2.1 million sq. ft. of warehouses in India.

“We are delighted to open doors to our fifth warehousing facility in India this year, with JK Tyre & Industries as the anchor customer and the second one in Bhiwandi, Mumbai. With the new facility, we can support our customers with superior connectivity, efficient inventory management, cost optimization and speed to market,” said Darryl Judd, Head of Products, Maersk South Asia.

JK Tyre is one of India’s leading tire manufacturers and is the 22nd largest manufacturer in the world. It has 12 manufacturing plants globally, including nine in India and three in Mexico, that collectively produce around 33 million tires annually.

In addition to Maersk’s buildout of its capabilities on the Indian subcontinent, they are also moving forward with expansion in Brazil and South America. This week, they also marked the opening of a new warehouse facility in Cajamar in the state of Sao Paulo, Brazil. With more than 200m,000 sq. ft. it is expected to add additional warehouse capacity to the main economic centers of the Southeast region. It is located near the main markets for fast-moving consumer goods, electronics, fashion, and lifestyle, among others. The facility is about 30 miles from the main airports and 75 miles from the port of Santos.

“This is one important step on the Maersk journey to become the global integrator of container logistics. Our new facility in Brazil is part of our investment in the East Coast of South America for building our warehousing and our contract logistics business. We are growing extremely fast with our customers on landside logistics, and we will continue to grow this part of our business in the coming years,” commented Soren Skou, CEO of A.P- Moller- Maersk regarding the launch of the new warehouse in Brazil.

In its most recent financial reports, for the second quarter of 2022, Maersk reported it had maintained its strong momentum in bringing integrated logistics solutions to customers. For the quarter, revenue for the logistics operations grew 61 percent to $3.5 billion, marking it the second largest part of the company behind ocean shipping and contributing 16 percent of total revenues. Earnings were up more than 50 percent from the logistics business due to higher volumes from new customer wins and increased spending from existing customers Maersk reported.