PWC and MMI announce logistics agreement

May 17, 2003

PWC and MMI announce logistics agreement

Public Warehousing Company (PWC) has announced an agreement with Dubai-based Maritime and Mercantile International LLC (MMI), to acquire certain assets of MMI Logistics. This also signals the start of a strategic relationship for the two companies, whereby PWC will provide logistics services to the MMI group.

In a joint statement, Tarek Sultan, Chairman and Managing Director of the PWC Group, and Kerem Camcigil, CEO of MMI, said that the two companies could integrate perfectly, due to their common corporate cultures.

Tarek Sultan elaborated that the move was part of PWC's active strategic expansion plans in the region. "This alliance has been prompted by our desire to offer both current and prospective customers the advantages and economies of scale associated with an integrated ‘one-stop shop’ global logistics platform, with substantial resources throughout the Middle East.

"This move not merely leverages PWC's strong regional presence in logistics operations and related solutions, but provides us with the opportunity to strengthen our current client relationships and further, expand offerings to include third party customers currently using the MMI Logistics facilities at Jebel Ali. Our synergies with MMI will undoubtedly allow us to rapidly expand operations in the region," he stated.

Kerem Camcigil said that, “MMI is delighted to be working with PWC in the creation of an integrated regional logistics platform, combining the strengths of each company into a more competitive, truly regional force. While the agreement will provide enhanced regional logistics services to its client base, logistics will remain a core competency of MMI and an integral part of our service offer and management responsibility to our partners and suppliers." He added: "The agreement with PWC will allow MMI to focus more resources on developing our corporate strategy.”

MMI's customer's include Philips, Epson, Ferrero, Highland Spring, Reckitt Benckiser, Baskin Robbins, GlaxoSmithKline, Carrefour, the Hilton, Spinneys & Dubai Duty Free to name a few.

Sultan also announced the appointment of Mike Lee (former Head of MMI Logistics) as the general manager of PWC Logistics in the UAE.

Mike Lee said that he was delighted to continue as the chief point of contact for all existing MMI Logistics customers, and to take on the role of expanding the business. "PWC has made significant expansions throughout Iraq, Kuwait, Bahrain, Qatar, Oman, Saudi Arabia, Jordan, Syria, and Lebanon over the past few months, and this entry into the UAE is an important foothold for the Group in gaining market leadership in the region."

Lee also affirmed the company's intention to service all existing clients of MMI Logistics under their existing contracts and agreements, stressing that the combination provided substantial value-add to the customers of both groups, through the creation of a common logistics platform with regional synergy. According to Lee, "This is a great opportunity for our customers to expand their value propositions to existing customer, supplier, and stakeholder relationships."