German container line Hapag-Lloyd announced this week that it had successfully completed the integration of UASC into the group and expected to achieve significant cost reductions next year as a result of merger synergies.
At a gathering of the shipping company’s global management in Hamburg, Rolf Habben Jansen, CEO of Hapag-Lloyd, said: “Thanks to the very good cooperation of our teams, we have managed to successfully implement this integration in just six months. In the process, our extensive experience from earlier mergers – such as with CP Ships in 2005 and with CSAV in 2014 – helped us a lot.”
Hapag-Lloyd merged with the United Arab Shipping Company on 24 May 2017. Within the subsequent six months, the operating businesses, the IT systems, the different fleets, and the corresponding departments and country organisations were brought together, Hapag-Lloyd said.
Beginning in 2019, Hapag-Lloyd expects annual synergies of US$435 million as a result of the merger with UASC. “Already in 2018, we will benefit from the merger of the two shipping companies due to significant cost reductions,” Habben Jansen said.
With more than 12,000 employees in five sales regions and 126 countries, as well as a fleet of 215 container ships, Hapag-Lloyd is now the fifth-largest liner shipping company in the world. It operates 125 liner services in a global network between more than 600 ports, with a container capacity of 2.3 million TEU.