1 00:00:07,600 --> 00:00:10,560 Speaker 1: Hi everyone, this is Lee Clasgow when We're Talking Transports. 2 00:00:10,600 --> 00:00:14,160 Speaker 1: Welcome to Bloomberg Intelligence Talking Transports podcast. I'm your host, 3 00:00:14,240 --> 00:00:18,880 Speaker 1: Lee Klaskow, Senior Freight transportation logistics Analysts at Bloomberg Intelligence, 4 00:00:19,280 --> 00:00:22,160 Speaker 1: Bloomberg's in house research arm of almost five hundred analysts 5 00:00:22,200 --> 00:00:25,599 Speaker 1: and strategists around the world. A quick public service announcement 6 00:00:25,680 --> 00:00:29,160 Speaker 1: before we dive in. Your support is instrumental to keep 7 00:00:29,160 --> 00:00:32,720 Speaker 1: bringing great guests and conversations to you, our listeners, and 8 00:00:32,760 --> 00:00:35,800 Speaker 1: we need your support, So please, if you enjoy this podcast, 9 00:00:36,240 --> 00:00:39,279 Speaker 1: share it, like it and leave a comment. Also, if 10 00:00:39,320 --> 00:00:42,760 Speaker 1: you have ideas, feedback, or just want to talk transports, 11 00:00:42,800 --> 00:00:45,479 Speaker 1: I'm always happy to connect. You can find me on 12 00:00:45,600 --> 00:00:50,400 Speaker 1: the Bloomberg terminal, on LinkedIn, or on Twitter at logistics Lee. 13 00:00:50,479 --> 00:00:51,239 Speaker 1: We're delayed to. 14 00:00:51,159 --> 00:00:51,800 Speaker 2: Have with us. 15 00:00:51,920 --> 00:00:56,800 Speaker 1: Morton Johansson DP World America's COO and executive vice President. 16 00:00:57,000 --> 00:01:00,200 Speaker 1: His career in the maritime and logistics sector spans more 17 00:01:00,240 --> 00:01:04,280 Speaker 1: than two decades. Prior to joining DP World in twenty eleven, 18 00:01:04,680 --> 00:01:08,640 Speaker 1: he served as head of Technology, Operations and Engineering for 19 00:01:08,840 --> 00:01:13,240 Speaker 1: APM Terminals. His career also include leadership roles as aggester 20 00:01:13,680 --> 00:01:18,640 Speaker 1: and mayors. Welcome to talking transports. Martin, thanks for being here. Thanksy, 21 00:01:18,760 --> 00:01:21,560 Speaker 1: Thanks for the opportunity to join you today. I appreciate it. 22 00:01:22,480 --> 00:01:26,880 Speaker 1: So DP World may not be a household name for everybody, 23 00:01:26,880 --> 00:01:28,760 Speaker 1: could you tell us a little bit about what the 24 00:01:28,800 --> 00:01:29,800 Speaker 1: company does. 25 00:01:29,880 --> 00:01:33,440 Speaker 2: Of course, So DP World it's actually we have been 26 00:01:33,480 --> 00:01:36,560 Speaker 2: around for a long time. But as you say, maybe 27 00:01:36,800 --> 00:01:38,920 Speaker 2: if you're not in the industry, you might not know 28 00:01:39,000 --> 00:01:42,800 Speaker 2: the name DP World now. But DP world is were 29 00:01:42,840 --> 00:01:48,160 Speaker 2: headquartered out of Dubai. So our history starts all the 30 00:01:48,200 --> 00:01:52,600 Speaker 2: way back in the nineties seventies where we operated the 31 00:01:53,040 --> 00:01:58,960 Speaker 2: pasheet in Dubai as a as a local poard operator 32 00:01:59,440 --> 00:02:02,840 Speaker 2: in Dubai at that time. But since then we have 33 00:02:03,000 --> 00:02:07,840 Speaker 2: grown rapidly globally and have actually become a real global 34 00:02:08,400 --> 00:02:13,560 Speaker 2: and very diverse operator today. Where DP World really took 35 00:02:13,639 --> 00:02:18,200 Speaker 2: off and became international was back in in two thousand 36 00:02:18,200 --> 00:02:23,200 Speaker 2: and five. There's there's basically two periods that that marks 37 00:02:23,280 --> 00:02:27,440 Speaker 2: the the growth of DP World significantly as a as 38 00:02:27,480 --> 00:02:30,239 Speaker 2: a port operator. And in two thousand and five we 39 00:02:30,360 --> 00:02:35,200 Speaker 2: acquired the CSX World Terminals, which was the port side 40 00:02:35,280 --> 00:02:39,959 Speaker 2: of Zea Land here in the in the US. And 41 00:02:40,080 --> 00:02:42,679 Speaker 2: then in two thousand and six we acquired A p 42 00:02:42,880 --> 00:02:47,239 Speaker 2: and O Ports, and with those two big acquisitions we 43 00:02:47,400 --> 00:02:51,120 Speaker 2: became a true real global port operator back back then. 44 00:02:52,000 --> 00:02:55,040 Speaker 2: Since then we have we have evolved a lot. We 45 00:02:55,160 --> 00:02:58,680 Speaker 2: have grown organically around the world with with port acquisitions. 46 00:03:00,080 --> 00:03:03,040 Speaker 2: Then going back what is it now, maybe five six years, 47 00:03:04,160 --> 00:03:09,120 Speaker 2: we have expanded into becoming a logistics operator as well. 48 00:03:09,240 --> 00:03:11,680 Speaker 2: So you can say we are kind of an into 49 00:03:11,840 --> 00:03:15,320 Speaker 2: end supply chain operator today and we don't really see 50 00:03:15,360 --> 00:03:18,760 Speaker 2: ourselves as a as just a port operator more anymore. 51 00:03:18,840 --> 00:03:22,840 Speaker 2: So we do obviously ports, we do freight forwarding, we 52 00:03:22,960 --> 00:03:27,960 Speaker 2: do contract logistics, We do maritime. And when I say maritime, 53 00:03:28,400 --> 00:03:30,800 Speaker 2: I was saying we're not a we're not a shipping line, 54 00:03:31,360 --> 00:03:34,480 Speaker 2: but we are a common feeda operator. So we provide 55 00:03:35,040 --> 00:03:41,640 Speaker 2: maritime solutions for our customers, and then we do contract logistics. 56 00:03:43,000 --> 00:03:46,119 Speaker 2: And then we also work a lot with digital solutions 57 00:03:46,680 --> 00:03:49,840 Speaker 2: that supports our business and add value to our customers. 58 00:03:50,280 --> 00:03:52,240 Speaker 1: Okay, great. And so when you talk when you're talking 59 00:03:52,240 --> 00:03:54,360 Speaker 1: about ports, you're talking about all kinds of ports, right 60 00:03:54,480 --> 00:03:58,520 Speaker 1: like container ports, bulk ports, people ports. Do you deal 61 00:03:58,560 --> 00:03:59,600 Speaker 1: with passengers as well? 62 00:04:00,600 --> 00:04:05,120 Speaker 2: We we do, we do predominantly we are container port operator, 63 00:04:05,800 --> 00:04:09,640 Speaker 2: but we do operate break bulk facilities around the world. 64 00:04:10,360 --> 00:04:14,320 Speaker 2: That's from grind bulk to to liquid bulk. We also 65 00:04:14,560 --> 00:04:19,559 Speaker 2: operate cruise terminals, especially here in the Americas. We handle 66 00:04:19,680 --> 00:04:23,840 Speaker 2: cruises in Argentina. We do cruises in in China as well. 67 00:04:24,720 --> 00:04:28,279 Speaker 2: So it's it's quite a diverse portfolio operations. 68 00:04:27,920 --> 00:04:31,680 Speaker 1: That we have. And and geographically, you know the America 69 00:04:31,800 --> 00:04:34,880 Speaker 1: is what do they make up of the company And 70 00:04:35,160 --> 00:04:36,880 Speaker 1: if you can break that out by like you know, 71 00:04:37,400 --> 00:04:38,720 Speaker 1: how how deep world does. 72 00:04:39,200 --> 00:04:42,760 Speaker 2: Yeah, so in falls the Americas is from from Canada 73 00:04:43,560 --> 00:04:46,920 Speaker 2: all the way down to to Chilean and Argentina, and 74 00:04:47,080 --> 00:04:51,080 Speaker 2: in South America. We operate in in twelve countries today. 75 00:04:51,240 --> 00:04:55,040 Speaker 2: So if we go from from north to south, we 76 00:04:55,200 --> 00:04:59,600 Speaker 2: operate in Canada, we operate in in the US. It 77 00:04:59,720 --> 00:05:11,240 Speaker 2: makes we are in Panama, we are in Ecuador, Peru, Chile, Argentina, Brazil, Surinam, Colombia, 78 00:05:11,880 --> 00:05:15,360 Speaker 2: and the Dominica Republic. It's not in all of those 79 00:05:15,720 --> 00:05:19,160 Speaker 2: countries where we operate ports. That's only in either of 80 00:05:19,240 --> 00:05:22,800 Speaker 2: them where we actually operate ports. In the other four 81 00:05:22,880 --> 00:05:28,400 Speaker 2: countries we operate mainly freight forwarding officers and or contract 82 00:05:28,440 --> 00:05:29,760 Speaker 2: logistics operations. 83 00:05:30,360 --> 00:05:33,320 Speaker 1: Gotcha and you know, could you do you do see 84 00:05:33,360 --> 00:05:35,360 Speaker 1: a lot of you know, because you know, as you 85 00:05:35,480 --> 00:05:39,640 Speaker 1: mentioned you are an internet logistics provider, you probably do 86 00:05:39,839 --> 00:05:42,120 Speaker 1: see a lot what's going on in the world when 87 00:05:42,160 --> 00:05:44,520 Speaker 1: it comes to commerce. Can you talk about, you know, 88 00:05:44,600 --> 00:05:48,240 Speaker 1: what your customers are saying about, you know, demand going forward? 89 00:05:48,560 --> 00:05:51,800 Speaker 1: It's obviously been a very violatile and uncertain time this year. 90 00:05:51,960 --> 00:05:56,160 Speaker 2: For sure, Lee, without a doubt, I think when when 91 00:05:56,240 --> 00:05:59,680 Speaker 2: we talk to our customers, what what our customers are 92 00:06:00,160 --> 00:06:05,760 Speaker 2: looking for is reliability and and stability because I think 93 00:06:06,400 --> 00:06:11,039 Speaker 2: since since COVID, when the world was really turned upside down, 94 00:06:12,040 --> 00:06:16,080 Speaker 2: the word reliability has become more and more important than ever. 95 00:06:17,400 --> 00:06:22,200 Speaker 2: And how do you ensure a stable supply chain going forward? 96 00:06:22,279 --> 00:06:25,600 Speaker 2: So that's where we as as deep world, being as 97 00:06:25,920 --> 00:06:28,560 Speaker 2: diverse as we are, and with the global footprint that 98 00:06:28,680 --> 00:06:32,920 Speaker 2: we have, we can actually offer our customers good solutions 99 00:06:33,360 --> 00:06:36,880 Speaker 2: where we can handle each handoff in the supply chain, 100 00:06:37,360 --> 00:06:40,000 Speaker 2: so the customer will have more or less a single 101 00:06:40,120 --> 00:06:43,160 Speaker 2: source to go to. So when we talk about that 102 00:06:43,400 --> 00:06:48,920 Speaker 2: is stability, is transparency in the in the supply chain. 103 00:06:49,520 --> 00:06:53,840 Speaker 2: Often when you deal with different stakeholders, it's difficult to 104 00:06:53,960 --> 00:06:57,240 Speaker 2: have the visibility of where your cargo is at any 105 00:06:57,279 --> 00:07:01,120 Speaker 2: given time. So by working with us in deep world, 106 00:07:01,200 --> 00:07:04,400 Speaker 2: and not just for the physical assets that we have 107 00:07:04,480 --> 00:07:07,680 Speaker 2: around the world with our boats and officers and operations, 108 00:07:08,279 --> 00:07:11,360 Speaker 2: but also for the systems that we have developed, we 109 00:07:11,440 --> 00:07:15,480 Speaker 2: can offer that single source of information and that real 110 00:07:15,560 --> 00:07:17,880 Speaker 2: time trace ability of Chicago. 111 00:07:19,080 --> 00:07:20,880 Speaker 1: And you know a lot of your customers did they 112 00:07:21,000 --> 00:07:24,880 Speaker 1: pull forward their demand ahead of tariffs earlier in the year, 113 00:07:24,960 --> 00:07:26,880 Speaker 1: And you know a lot of people talk about, you know, 114 00:07:26,960 --> 00:07:29,760 Speaker 1: we're in this air pocketed demand because there's been so 115 00:07:29,840 --> 00:07:32,560 Speaker 1: much pull forward? Is are you Are you seeing that 116 00:07:33,200 --> 00:07:34,680 Speaker 1: with your customers? We do. 117 00:07:35,920 --> 00:07:42,280 Speaker 2: It's a little mixed in the America's Region force obviously 118 00:07:42,520 --> 00:07:44,680 Speaker 2: like that. There's been a lot of uncertainty this year 119 00:07:45,320 --> 00:07:50,520 Speaker 2: with tariffs, and we have seen a fund loading of volumes, 120 00:07:51,200 --> 00:07:56,600 Speaker 2: especially imports coming into the region. We see a slight 121 00:07:56,880 --> 00:08:01,160 Speaker 2: softening of volumes a little bit. It's basically in in 122 00:08:01,320 --> 00:08:04,680 Speaker 2: Canada and in Northern Canada. But if we look at 123 00:08:04,760 --> 00:08:09,920 Speaker 2: South America, the volumes are stronger than ever and most 124 00:08:09,960 --> 00:08:14,760 Speaker 2: of our our ports are operating a very very high capacity, 125 00:08:15,320 --> 00:08:19,160 Speaker 2: so we haven't really seen an impact in slow down 126 00:08:19,240 --> 00:08:22,480 Speaker 2: in South America. It's a little more in North America 127 00:08:22,560 --> 00:08:23,800 Speaker 2: where we where we see. 128 00:08:23,640 --> 00:08:27,600 Speaker 1: It right, What's what's driving the robust growth in South America. 129 00:08:28,040 --> 00:08:33,640 Speaker 2: I think with with everything that goes on geopoliticity, I 130 00:08:33,760 --> 00:08:36,439 Speaker 2: think it's it's a good time and it's a good 131 00:08:36,600 --> 00:08:41,199 Speaker 2: opportunity for for South America. We all know that the 132 00:08:41,320 --> 00:08:44,960 Speaker 2: pressure there is on on trade from from from Asia 133 00:08:45,040 --> 00:08:52,600 Speaker 2: into to the US and finding alternative markets, alternative supply chains, 134 00:08:53,200 --> 00:08:56,640 Speaker 2: and there I see South America playing a very important role, 135 00:08:56,800 --> 00:09:01,360 Speaker 2: not just in in food and perishable products. If we 136 00:09:01,400 --> 00:09:05,720 Speaker 2: look at the trade coming into two US, but also 137 00:09:05,880 --> 00:09:11,439 Speaker 2: with's been moving manufacturing closer to the US. There will 138 00:09:11,520 --> 00:09:15,000 Speaker 2: be a lot of unshoing coming into the US, but 139 00:09:15,040 --> 00:09:18,760 Speaker 2: there will also be reassuring it's not necessarily everything that 140 00:09:18,880 --> 00:09:23,520 Speaker 2: you can ensure into to the US, so more low skill, 141 00:09:24,559 --> 00:09:30,000 Speaker 2: low value manufacturing. We see a big influx UH and 142 00:09:30,200 --> 00:09:33,599 Speaker 2: interest in coming into South America and into some of 143 00:09:33,679 --> 00:09:36,839 Speaker 2: the countries where we operate where we have economic zones 144 00:09:37,120 --> 00:09:40,680 Speaker 2: as well, So like in Dominica Republic and in Equator 145 00:09:40,800 --> 00:09:44,800 Speaker 2: we have what we call economic zones integrated in into 146 00:09:44,880 --> 00:09:48,679 Speaker 2: the poor so it's basically we operate a free zone 147 00:09:48,760 --> 00:09:53,960 Speaker 2: environment where we have set up today is mainly logistics 148 00:09:54,080 --> 00:09:59,480 Speaker 2: distribution that we operate from these economic zones, but we 149 00:09:59,640 --> 00:10:03,840 Speaker 2: now doing a major expansion in the Dominica Republic where 150 00:10:03,880 --> 00:10:08,040 Speaker 2: we're actually opening up this free zone for manufacturing companies. 151 00:10:08,679 --> 00:10:12,400 Speaker 2: So manufacturing companies can come and set themselves up in 152 00:10:12,480 --> 00:10:16,520 Speaker 2: this ecosystem that we have. Everything is within a free 153 00:10:16,640 --> 00:10:20,040 Speaker 2: zone and you basically operate within this free zone and 154 00:10:20,120 --> 00:10:24,319 Speaker 2: you can you can do redistribution, you can do your 155 00:10:24,880 --> 00:10:29,280 Speaker 2: rear shuring manufacturing. Majority of that goes into to the 156 00:10:29,480 --> 00:10:33,559 Speaker 2: US for the Medicare Republic. And the location is is 157 00:10:33,640 --> 00:10:37,040 Speaker 2: a very attractive location, not just from a from a 158 00:10:37,160 --> 00:10:41,599 Speaker 2: time perspective, because you can you can ship bias in 159 00:10:41,760 --> 00:10:44,280 Speaker 2: three to four days into the US, you can ship 160 00:10:44,320 --> 00:10:48,439 Speaker 2: your cargo, buy a air on a daily basis. But 161 00:10:48,559 --> 00:10:51,600 Speaker 2: it's also a very attractive location with a long history 162 00:10:51,679 --> 00:10:55,760 Speaker 2: of manufacturing companies, US companies being based in the in 163 00:10:55,840 --> 00:11:03,080 Speaker 2: Theominicare Republic, Relatively low labor cost, good civil infrastructure technology. 164 00:11:04,360 --> 00:11:07,480 Speaker 2: So we see a lot of opportunities for for South 165 00:11:07,559 --> 00:11:12,199 Speaker 2: America and opportunities to grow that interregional trade in the 166 00:11:12,520 --> 00:11:13,280 Speaker 2: in the Americas. 167 00:11:13,880 --> 00:11:17,480 Speaker 1: And I don't know if you're if you know where 168 00:11:17,520 --> 00:11:19,920 Speaker 1: you see, you see it. But like the companies that 169 00:11:20,000 --> 00:11:23,079 Speaker 1: are going to Dominican Republic to take advantage of this, 170 00:11:23,880 --> 00:11:26,440 Speaker 1: what industries are there? Is it? Is it mostly apparel? 171 00:11:27,280 --> 00:11:32,240 Speaker 2: Traditionally it's been apparel. We see we see other companies, 172 00:11:33,000 --> 00:11:41,719 Speaker 2: especially with electronic electronic components. Also medical devices, not so 173 00:11:41,920 --> 00:11:46,800 Speaker 2: much pharmaceutical, but more medical devices. And when I say 174 00:11:46,880 --> 00:11:49,880 Speaker 2: medical devices, it can be anything from your I V 175 00:11:50,160 --> 00:11:55,000 Speaker 2: back that's being produced in in the DR to the 176 00:11:55,960 --> 00:12:00,440 Speaker 2: the gown that they were. It can be too, et 177 00:12:00,480 --> 00:12:05,440 Speaker 2: cetera that's being produced. So there's there's so many different 178 00:12:05,559 --> 00:12:09,040 Speaker 2: elements and opportunities that can be brought into to the 179 00:12:09,120 --> 00:12:10,200 Speaker 2: DR for manufacturing. 180 00:12:10,679 --> 00:12:14,439 Speaker 1: Very very interesting. And you know you mentioned you're in 181 00:12:14,520 --> 00:12:18,520 Speaker 1: a contract logistics business. Could you talk about, you know, 182 00:12:20,200 --> 00:12:24,839 Speaker 1: where is that business predominantly and then kind of give 183 00:12:24,920 --> 00:12:28,800 Speaker 1: us an example of what what that's what those services 184 00:12:28,880 --> 00:12:29,199 Speaker 1: look like. 185 00:12:30,000 --> 00:12:34,400 Speaker 2: So we did we did an acquisition back in twenty 186 00:12:34,480 --> 00:12:39,520 Speaker 2: twenty one of a company called the Syncreon Logistics and 187 00:12:39,880 --> 00:12:45,400 Speaker 2: they are a contract logistics operator predominantly operating in the 188 00:12:45,600 --> 00:12:48,040 Speaker 2: US and in Europe. But if we just look at 189 00:12:48,240 --> 00:12:51,240 Speaker 2: at the Americans advance, this is the region that we 190 00:12:51,480 --> 00:12:55,720 Speaker 2: look after We do a lot of contract logistics operations 191 00:12:56,080 --> 00:13:00,319 Speaker 2: around the US. I think we have probably forty plustions 192 00:13:01,320 --> 00:13:06,480 Speaker 2: and we service mainly the automotive and the tech industry. 193 00:13:07,080 --> 00:13:10,840 Speaker 2: So in the automotive industry industry, we supply parts into 194 00:13:10,920 --> 00:13:17,000 Speaker 2: the manufacturing line for the for the car manufacturers. For 195 00:13:17,440 --> 00:13:22,080 Speaker 2: for the tech industry, it can be distribution of their products. 196 00:13:22,840 --> 00:13:27,199 Speaker 2: We do modifications for example, to to laptops, what kind 197 00:13:27,240 --> 00:13:30,319 Speaker 2: of software you need on your laptop. We do that 198 00:13:30,480 --> 00:13:34,720 Speaker 2: and we distribute it. And we have seen a big 199 00:13:34,800 --> 00:13:39,079 Speaker 2: optake in in data centers, not that we are operating 200 00:13:39,160 --> 00:13:42,880 Speaker 2: the actual data centers, but we are supporting the logistics 201 00:13:43,000 --> 00:13:48,000 Speaker 2: and the distribution into the data centers for companies. So 202 00:13:48,120 --> 00:13:50,439 Speaker 2: that's that's mainly what we see here. And in North 203 00:13:50,480 --> 00:13:55,920 Speaker 2: America then we do a different type of what we 204 00:13:56,000 --> 00:14:00,439 Speaker 2: call contract logistics, which is more traditional palettin let out, 205 00:14:01,160 --> 00:14:05,720 Speaker 2: pick and pack when you added services. In in South America, 206 00:14:06,920 --> 00:14:10,120 Speaker 2: mainly in in again in the Dominican Republic, we do 207 00:14:10,240 --> 00:14:13,000 Speaker 2: a lot in we do we do it in Ecuador, 208 00:14:13,840 --> 00:14:17,199 Speaker 2: we do some in in Brazil as well, But the 209 00:14:17,320 --> 00:14:21,560 Speaker 2: more sophisticated type of contract logistics is mainly around US, 210 00:14:21,840 --> 00:14:23,880 Speaker 2: Canada and and Mexico where we do. 211 00:14:24,000 --> 00:14:27,320 Speaker 1: That that tend to be a high return out and 212 00:14:27,360 --> 00:14:31,960 Speaker 1: invested capital, but low margin business or like I'm assuming, 213 00:14:32,120 --> 00:14:35,200 Speaker 1: is it like cost plus how how is that business? 214 00:14:36,120 --> 00:14:39,640 Speaker 2: It varies from from customer to customer, how the how 215 00:14:39,720 --> 00:14:44,360 Speaker 2: the contracts are set up. The logistics business and the 216 00:14:44,440 --> 00:14:49,080 Speaker 2: port business two very very different businesses. They're all in 217 00:14:49,200 --> 00:14:52,080 Speaker 2: the in the supply chain at some point, but they're 218 00:14:52,200 --> 00:14:58,440 Speaker 2: very different. The port industry is extremely capis heavy, slow 219 00:14:58,520 --> 00:15:01,680 Speaker 2: to market. You can just build a porter from one 220 00:15:01,760 --> 00:15:04,960 Speaker 2: day to another. If you need to do a greenfield port, 221 00:15:05,040 --> 00:15:08,560 Speaker 2: we often looking at three three plus years to build 222 00:15:08,880 --> 00:15:13,280 Speaker 2: to build a new port. In today's world for a 223 00:15:13,720 --> 00:15:17,880 Speaker 2: small and medium port, you're often talking half a half 224 00:15:17,920 --> 00:15:20,720 Speaker 2: a billion. A bigger port is is a billion plus. 225 00:15:22,160 --> 00:15:26,200 Speaker 2: Where the contact the districts is is very different. Often 226 00:15:26,280 --> 00:15:31,480 Speaker 2: we don't actually own the warehouses. We release warehouses. So 227 00:15:31,680 --> 00:15:35,120 Speaker 2: it's it's an acid light business. But both of them are. 228 00:15:35,240 --> 00:15:36,960 Speaker 2: It's with different margins as well. 229 00:15:38,480 --> 00:15:42,400 Speaker 1: Yeah, yeah, and then you know, on the port business, 230 00:15:42,600 --> 00:15:47,000 Speaker 1: I'm assuming there are different operating models depending on the 231 00:15:47,240 --> 00:15:50,080 Speaker 1: geography and and and the workers like what you know, 232 00:15:50,160 --> 00:15:53,760 Speaker 1: the kind of union agreement you have can you talk 233 00:15:53,800 --> 00:15:57,680 Speaker 1: about automation in the in the port industry, you know. 234 00:15:58,600 --> 00:16:00,520 Speaker 2: What do you graphic? 235 00:16:00,920 --> 00:16:03,640 Speaker 1: What what geographies is it high and where is it 236 00:16:03,840 --> 00:16:07,760 Speaker 1: kind of really tough to push those technology innovations through. 237 00:16:08,360 --> 00:16:11,520 Speaker 2: Yeah, So if if I should talk to too globally 238 00:16:11,640 --> 00:16:16,120 Speaker 2: for for deep world, we generally see more automation in 239 00:16:17,000 --> 00:16:23,560 Speaker 2: in higher labor cost countries. So in northern western countries 240 00:16:24,040 --> 00:16:28,840 Speaker 2: you you often see more automation. If I look at 241 00:16:29,080 --> 00:16:33,320 Speaker 2: at the Americas, we are I would to say we 242 00:16:33,360 --> 00:16:36,400 Speaker 2: are we're behind with automation, but we haven't really had 243 00:16:36,480 --> 00:16:40,040 Speaker 2: the need for for automation in the in the Americas. 244 00:16:40,400 --> 00:16:44,200 Speaker 2: That is changing because if we look at at our 245 00:16:44,600 --> 00:16:49,920 Speaker 2: port portfolio here, all of our boats, fortunately which is good, 246 00:16:50,560 --> 00:16:55,240 Speaker 2: is operating at a very high capacity. So when when 247 00:16:55,320 --> 00:16:59,240 Speaker 2: you reach that high capacity, it starts to make sense 248 00:16:59,600 --> 00:17:05,960 Speaker 2: to introduce automation for for various reasons. It can be 249 00:17:06,200 --> 00:17:12,240 Speaker 2: to run a more consistent operation by using automation. A 250 00:17:12,359 --> 00:17:14,680 Speaker 2: lot of the focus why we're doing it is is 251 00:17:14,760 --> 00:17:19,919 Speaker 2: linked to safety and security and in getting people away 252 00:17:20,040 --> 00:17:24,680 Speaker 2: from high risk areas. It's not about reducing jobs in 253 00:17:24,920 --> 00:17:28,480 Speaker 2: in any way. It's about changing the jobs that we 254 00:17:28,600 --> 00:17:31,800 Speaker 2: have in in the port industry today, and we cannot 255 00:17:32,200 --> 00:17:36,000 Speaker 2: we cannot deny that we're also facing challenges. It depends 256 00:17:36,119 --> 00:17:38,639 Speaker 2: on on where you operate in the in the region, 257 00:17:39,320 --> 00:17:41,800 Speaker 2: but if we look at today's world, it's it can 258 00:17:41,880 --> 00:17:45,159 Speaker 2: be difficult to attract young people into a to a 259 00:17:45,280 --> 00:17:52,080 Speaker 2: port environment, which traditionally is a is a hard labor environment. 260 00:17:52,280 --> 00:17:57,800 Speaker 2: You're often outside for eight hours a day. You can 261 00:17:57,880 --> 00:18:00,560 Speaker 2: be on board a ship during lashing. You can stand 262 00:18:00,600 --> 00:18:05,680 Speaker 2: on a key handling twistlocks in in tough environments, which 263 00:18:05,800 --> 00:18:10,080 Speaker 2: is also posing a safety risk. If we can change 264 00:18:10,160 --> 00:18:14,159 Speaker 2: those kinds of jobs and put people inside in a 265 00:18:14,440 --> 00:18:18,440 Speaker 2: more pleasant environment. So when we're looking at at automation 266 00:18:18,720 --> 00:18:22,240 Speaker 2: for for the American's region, we're generally looking at a 267 00:18:22,359 --> 00:18:26,000 Speaker 2: stepped approach. One thing is that we will electrify our 268 00:18:26,040 --> 00:18:29,639 Speaker 2: equipment first, and that's especially when it comes to our 269 00:18:29,880 --> 00:18:33,320 Speaker 2: yard equipment. That's the RTGs that we operate in the 270 00:18:33,440 --> 00:18:38,080 Speaker 2: yard and the horizontal transportation for the RTGs. Once you 271 00:18:38,200 --> 00:18:43,080 Speaker 2: electrifying the equipment, you can start introducing remote control. So 272 00:18:43,240 --> 00:18:45,680 Speaker 2: we just instead of having an operator sitting in the 273 00:18:45,920 --> 00:18:48,480 Speaker 2: in the machine it self, the operator will sit inside 274 00:18:48,520 --> 00:18:54,040 Speaker 2: in in an office. In a better economic economic position 275 00:18:54,280 --> 00:18:58,359 Speaker 2: and work conditions in an air conditioned office. So this 276 00:18:58,560 --> 00:19:00,639 Speaker 2: is this is what we're focusing on when we are 277 00:19:00,720 --> 00:19:04,720 Speaker 2: looking at at automation, right, And you said, what was 278 00:19:04,760 --> 00:19:09,280 Speaker 2: that RTGs? RTGs, that's that's it's Robert ty gana creams. 279 00:19:09,320 --> 00:19:11,879 Speaker 2: So that's that's the cranes that operate in the in 280 00:19:12,040 --> 00:19:15,720 Speaker 2: the yacht of our braces. We don't really we don't 281 00:19:15,760 --> 00:19:19,760 Speaker 2: really automate our key creams. So the cranes to operate 282 00:19:19,840 --> 00:19:23,200 Speaker 2: the vessels. We do that some places in the in 283 00:19:23,320 --> 00:19:25,720 Speaker 2: the world, but in the America not yet. 284 00:19:26,600 --> 00:19:29,240 Speaker 1: You know, you mentioned earlier, you know, kind of a 285 00:19:29,320 --> 00:19:33,920 Speaker 1: softness in demand and in parts of the America's a 286 00:19:33,960 --> 00:19:35,919 Speaker 1: lot of that had to do with terrists pull forward. 287 00:19:37,359 --> 00:19:39,600 Speaker 1: You know. I guess you have an intriguing perspective too 288 00:19:39,600 --> 00:19:45,040 Speaker 1: because the contractual the contract logistics business about peak demand, 289 00:19:45,920 --> 00:19:50,439 Speaker 1: Because are your customers telling you that this peak season 290 00:19:50,560 --> 00:19:54,800 Speaker 1: is going to be good, bad, muted? Like, what what 291 00:19:54,920 --> 00:19:58,040 Speaker 1: are they telling you about peak season going into the holidays? 292 00:19:58,600 --> 00:20:04,639 Speaker 2: I think outlook, it's fairly stable. I don't think we 293 00:20:04,760 --> 00:20:09,480 Speaker 2: will see a big geek coming. But I don't think 294 00:20:09,560 --> 00:20:13,200 Speaker 2: we will see and a further downturn or softening in 295 00:20:13,800 --> 00:20:17,440 Speaker 2: in volumes. That's at least the indication that we get 296 00:20:17,480 --> 00:20:22,600 Speaker 2: from our contract logistics customers. It's also when we look 297 00:20:22,680 --> 00:20:26,159 Speaker 2: at the outlook and the indications from from the shipping lines, 298 00:20:27,480 --> 00:20:30,520 Speaker 2: it kind of remains stable. But we have seen a 299 00:20:30,800 --> 00:20:35,399 Speaker 2: slight softening in smallness around the last two months, we 300 00:20:35,520 --> 00:20:37,720 Speaker 2: have seen the slight softening in volumes. 301 00:20:39,200 --> 00:20:43,080 Speaker 1: You know you mentioned earlier how Deep World is growing 302 00:20:43,119 --> 00:20:48,000 Speaker 1: as port business, you know, organically through acquisitions. When you 303 00:20:48,040 --> 00:20:52,200 Speaker 1: guys make an acquisitions or acquisitions, are these large companies 304 00:20:52,240 --> 00:20:55,080 Speaker 1: that you're acquiring or is this like one port or 305 00:20:55,160 --> 00:20:58,639 Speaker 1: one terminal. Could you just talk about, you know, the 306 00:20:58,800 --> 00:21:02,919 Speaker 1: targets that you've had in the past and maybe talk about, 307 00:21:03,400 --> 00:21:06,639 Speaker 1: you know, what geography is. Are you focused on growing 308 00:21:06,760 --> 00:21:07,760 Speaker 1: through acquisitions. 309 00:21:08,280 --> 00:21:11,960 Speaker 2: I will talk mainly to the Americas. This is the 310 00:21:12,080 --> 00:21:17,200 Speaker 2: area where where where we look after it. Generally we 311 00:21:17,640 --> 00:21:23,400 Speaker 2: prefer to go organically and that's through expanding our current assets. 312 00:21:24,480 --> 00:21:28,480 Speaker 2: So where we can, we will expand capacity. So some 313 00:21:28,680 --> 00:21:33,400 Speaker 2: of our big terminals around the world, obviously Dubai which 314 00:21:33,520 --> 00:21:38,200 Speaker 2: is our our flagship port in in Jebelali, we keep 315 00:21:38,240 --> 00:21:43,760 Speaker 2: on expanding capacity and in Jebelali we're doing major major 316 00:21:43,840 --> 00:21:46,640 Speaker 2: expansion in in London, Gateway in the in the UK. 317 00:21:48,560 --> 00:21:54,760 Speaker 2: And for the America's our let's say our flagship ports. 318 00:21:54,960 --> 00:21:58,640 Speaker 2: Our biggest ports versus around between one and a half 319 00:21:58,760 --> 00:22:01,399 Speaker 2: to two million tea. You in in the Americas is 320 00:22:01,480 --> 00:22:05,760 Speaker 2: in is in Perdue, It's in the Dominica Republic, in Calcerto, 321 00:22:06,080 --> 00:22:10,760 Speaker 2: is in in Santos, and we're growing rapidly in in 322 00:22:10,880 --> 00:22:14,960 Speaker 2: Ecuador as well in Insorga. So we have ongoing expansion 323 00:22:15,600 --> 00:22:20,920 Speaker 2: of capacity in in Ecuador. We are busy expanding in 324 00:22:21,160 --> 00:22:26,000 Speaker 2: uh in Santos. In Brazil, actually major major expansion where 325 00:22:26,040 --> 00:22:29,119 Speaker 2: we are diversifying the business that we do. In Brazil. 326 00:22:29,720 --> 00:22:33,520 Speaker 2: We don't only operate containers, were also handle the pulp 327 00:22:34,200 --> 00:22:37,840 Speaker 2: and we have signed a contract to handle the grain 328 00:22:37,960 --> 00:22:41,119 Speaker 2: and fertilizer as well through our facilities. So it's it's 329 00:22:41,160 --> 00:22:44,520 Speaker 2: in bulti purpose facilities. So we're building not only are 330 00:22:44,560 --> 00:22:47,760 Speaker 2: we expanding our container berth, but we're also building two 331 00:22:48,160 --> 00:22:52,160 Speaker 2: finger peers in in Brazil to to handle the pulp 332 00:22:52,440 --> 00:22:55,080 Speaker 2: and to handle the grain and fertilized and then in 333 00:22:55,160 --> 00:22:58,240 Speaker 2: the mini our public we just announced a couple of 334 00:22:58,280 --> 00:23:02,480 Speaker 2: months ago a civil one hundred and sixty million dollar expansion, 335 00:23:03,560 --> 00:23:06,720 Speaker 2: which is split more or less fifty to fifty and 336 00:23:07,000 --> 00:23:10,080 Speaker 2: in expanding the port going from around two point two 337 00:23:10,119 --> 00:23:13,639 Speaker 2: million TU or to three point two million TU, and 338 00:23:13,760 --> 00:23:18,440 Speaker 2: then an aggressive expansion and growth of our economic zone 339 00:23:18,640 --> 00:23:22,160 Speaker 2: in the in the Dominican public. So we we prefer 340 00:23:22,359 --> 00:23:25,440 Speaker 2: to do it that way, but obviously we are looking 341 00:23:25,520 --> 00:23:30,400 Speaker 2: at any opportunities in the region where there's an opportunity 342 00:23:30,560 --> 00:23:35,960 Speaker 2: to acquire an existing assets. That's that's how our preferred 343 00:23:37,160 --> 00:23:40,359 Speaker 2: mode of growth. So we don't operate any posts in 344 00:23:40,440 --> 00:23:46,240 Speaker 2: the United States. Okay, you probably know back in two 345 00:23:46,280 --> 00:23:48,720 Speaker 2: thousand and six when we acquire P and O Ports 346 00:23:49,760 --> 00:23:54,080 Speaker 2: that included quite a few terminals in in the US, 347 00:23:55,680 --> 00:23:58,680 Speaker 2: which I will go too much into the detail of 348 00:23:58,960 --> 00:24:02,240 Speaker 2: the history. It became political, yes I remember now, yes, 349 00:24:02,640 --> 00:24:05,800 Speaker 2: and and we decided we don't want to be part 350 00:24:05,840 --> 00:24:10,119 Speaker 2: of that, so we sold it. What what is today 351 00:24:10,200 --> 00:24:13,920 Speaker 2: is Post of America. So we don't have any poort 352 00:24:13,960 --> 00:24:16,960 Speaker 2: assets in the in the US. It doesn't mean that 353 00:24:17,240 --> 00:24:21,159 Speaker 2: that we're not interested. That's not that many opportunities around, 354 00:24:22,400 --> 00:24:24,840 Speaker 2: but should the right opportunity come up in the US, 355 00:24:25,040 --> 00:24:28,040 Speaker 2: we would definitely be interested in in evaluating. 356 00:24:27,480 --> 00:24:30,520 Speaker 1: It got you okay, So you also mentioned, you know, 357 00:24:30,560 --> 00:24:33,960 Speaker 1: we really didn't talk about the freight forwarding business. How 358 00:24:34,040 --> 00:24:36,600 Speaker 1: large of a player is DP world in the freight 359 00:24:36,680 --> 00:24:41,120 Speaker 1: boarding market? And can you talk about you know, there's 360 00:24:41,119 --> 00:24:44,480 Speaker 1: been some significant consolidation in the market with d s 361 00:24:44,600 --> 00:24:48,480 Speaker 1: V acquisition of dB Shanker. Can you talk about, you know, 362 00:24:49,160 --> 00:24:52,359 Speaker 1: how that has impacted your forwarding business? 363 00:24:52,920 --> 00:24:55,840 Speaker 2: So if I start with the with the last question first, 364 00:24:57,480 --> 00:25:02,360 Speaker 2: I think it's it hasn't really impacted us the conservent dations. 365 00:25:02,520 --> 00:25:05,760 Speaker 2: What you see with the with DSV and and Shinka. 366 00:25:06,280 --> 00:25:08,960 Speaker 2: We are still i would say, in a in a 367 00:25:09,119 --> 00:25:13,400 Speaker 2: startup phase of the frate foraring business for for deep people. 368 00:25:14,280 --> 00:25:17,119 Speaker 2: So we are we're slowly building up scale of our 369 00:25:17,520 --> 00:25:21,240 Speaker 2: of our faith forwarding business and our prisons around the world. 370 00:25:21,920 --> 00:25:25,280 Speaker 2: Last year it was really focusing on starting up offices 371 00:25:25,920 --> 00:25:30,080 Speaker 2: and actually hiring people and slowly starting up the fate 372 00:25:30,119 --> 00:25:33,400 Speaker 2: forwarding business. So we are still relatively if you look 373 00:25:33,480 --> 00:25:37,159 Speaker 2: on global terms, a relatively small player in the in 374 00:25:37,240 --> 00:25:38,200 Speaker 2: the faith forwarding field. 375 00:25:38,720 --> 00:25:42,680 Speaker 1: And is that growth going to come going forward? You know, 376 00:25:42,760 --> 00:25:45,960 Speaker 1: are you going to try to consolidate through acquisitions or 377 00:25:46,000 --> 00:25:50,560 Speaker 1: do you see growth from really just organic growth. 378 00:25:52,320 --> 00:25:57,240 Speaker 2: We we have done some a few minor acquisitions globally 379 00:25:57,760 --> 00:26:01,400 Speaker 2: in the last twelve to eighteen months. I think going 380 00:26:01,480 --> 00:26:04,399 Speaker 2: forward you will probably see an organic growth on our 381 00:26:04,560 --> 00:26:05,560 Speaker 2: faithfuling business. 382 00:26:06,119 --> 00:26:10,240 Speaker 1: And are you expected to grow organically above the market 383 00:26:10,520 --> 00:26:12,960 Speaker 1: or kind of with the market. 384 00:26:14,640 --> 00:26:16,480 Speaker 2: I think it's fair to say that we will probably 385 00:26:16,520 --> 00:26:19,040 Speaker 2: grow with with the market. Gotcha? Okay? 386 00:26:19,600 --> 00:26:21,800 Speaker 1: You know you kind of mentioned a little bit about 387 00:26:21,840 --> 00:26:26,320 Speaker 1: Technology'd like to talk more about technology. Could you talk 388 00:26:26,359 --> 00:26:29,200 Speaker 1: about you know, obviously everyone wants to talk about AI 389 00:26:29,359 --> 00:26:35,000 Speaker 1: and machine learning. Are you leveraging those types of technologies 390 00:26:35,040 --> 00:26:36,440 Speaker 1: and and and what do you what are you doing 391 00:26:36,520 --> 00:26:36,800 Speaker 1: with them? 392 00:26:36,840 --> 00:26:39,359 Speaker 2: If you are, you're You're right. That's kind of the 393 00:26:39,760 --> 00:26:43,840 Speaker 2: boss word around these days, and everybody talks about AI 394 00:26:43,920 --> 00:26:47,600 Speaker 2: and maybe even without knowing exactly what it means and 395 00:26:47,800 --> 00:26:50,119 Speaker 2: then gave me everything is just being put into a 396 00:26:50,320 --> 00:26:54,440 Speaker 2: to a pocket of being called AI today. But if 397 00:26:54,600 --> 00:26:58,640 Speaker 2: if we look at at our digital solutions, what we've 398 00:26:58,680 --> 00:27:01,400 Speaker 2: been focusing on for the last three to four years, 399 00:27:02,080 --> 00:27:07,159 Speaker 2: it's actually in building our in house solutions. Sorry. If 400 00:27:07,200 --> 00:27:10,960 Speaker 2: I start with our support side of the business, we 401 00:27:11,080 --> 00:27:15,159 Speaker 2: have developed our own terminal operating system, so we are 402 00:27:15,240 --> 00:27:19,960 Speaker 2: rolling that out across all our facilities globally. In in 403 00:27:20,040 --> 00:27:25,040 Speaker 2: DP World, we have also developed our own faith forwarding 404 00:27:26,520 --> 00:27:31,560 Speaker 2: system that is called Cargos, So we have Cargos Wanna 405 00:27:32,400 --> 00:27:36,640 Speaker 2: versus our faith forwarding system, and then we have other 406 00:27:36,920 --> 00:27:41,480 Speaker 2: solutions as well. But many people don't know is that 407 00:27:42,200 --> 00:27:44,960 Speaker 2: actually our our chairman of Deeply World is also the 408 00:27:45,080 --> 00:27:48,600 Speaker 2: chairman of of Customs in the in Dubai, so we 409 00:27:48,720 --> 00:27:53,600 Speaker 2: have very close ties with the customs solutions and we 410 00:27:53,760 --> 00:27:56,600 Speaker 2: have a digital arm in Dubai that also work on 411 00:27:56,800 --> 00:28:01,000 Speaker 2: custom solutions and implementing its run by to buy customs. 412 00:28:02,119 --> 00:28:05,879 Speaker 2: But the software is developed by BYOS and we have 413 00:28:06,440 --> 00:28:11,680 Speaker 2: we have done some implementations in the UK supporting the 414 00:28:11,920 --> 00:28:15,240 Speaker 2: UK customs. We have also done some in the in 415 00:28:15,359 --> 00:28:20,960 Speaker 2: the American public, implementing a risk engine for for Dominican customs. 416 00:28:22,680 --> 00:28:26,159 Speaker 2: But that is just to add add value to to 417 00:28:26,280 --> 00:28:28,639 Speaker 2: the communities where where we operate. If you look at 418 00:28:28,720 --> 00:28:34,320 Speaker 2: our own core systems, is really about having the our 419 00:28:34,480 --> 00:28:37,600 Speaker 2: faith in our own control and having our own in 420 00:28:37,680 --> 00:28:41,160 Speaker 2: house systems and how you can tie them all together 421 00:28:41,720 --> 00:28:46,400 Speaker 2: and created that seamless system solution that can give the 422 00:28:46,600 --> 00:28:50,320 Speaker 2: customer the transparency in the in the supply chain because 423 00:28:50,520 --> 00:28:53,320 Speaker 2: often if you ask customers is again as I say, 424 00:28:53,360 --> 00:28:57,400 Speaker 2: it's the it's the speed, is the reliability, and it's 425 00:28:57,440 --> 00:29:01,440 Speaker 2: the visibility of the supply chain. That's what we're trying 426 00:29:01,520 --> 00:29:06,520 Speaker 2: to create solutions for customers. When it comes to AI. Yes, 427 00:29:06,800 --> 00:29:12,480 Speaker 2: we are working on different solutions with AI, some link 428 00:29:12,600 --> 00:29:17,560 Speaker 2: to back office solutions. How can we support our maybe 429 00:29:17,840 --> 00:29:23,080 Speaker 2: mainly our our HR functions, our finance functions, how can 430 00:29:23,160 --> 00:29:26,160 Speaker 2: some of those be be more efficient by the by 431 00:29:26,200 --> 00:29:29,560 Speaker 2: the use of AI and machine learning. And when we 432 00:29:29,680 --> 00:29:33,720 Speaker 2: look at at the operational side of the business, especially 433 00:29:34,000 --> 00:29:38,080 Speaker 2: important for our facilities where we operate at high capacity. 434 00:29:38,400 --> 00:29:43,160 Speaker 2: When you are at eighty eighty five percent utilization in 435 00:29:43,280 --> 00:29:47,040 Speaker 2: the port, it's very difficult to do something without the 436 00:29:47,280 --> 00:29:51,600 Speaker 2: use of technology. So we are we're using AI to 437 00:29:52,160 --> 00:29:58,440 Speaker 2: reduce the amount of reshoffles, nonproductive moves in our terminals, 438 00:29:59,440 --> 00:30:04,120 Speaker 2: being able to predict better the dispatch of for example, 439 00:30:04,200 --> 00:30:08,120 Speaker 2: of import containers, being able to predict in that container 440 00:30:08,280 --> 00:30:11,080 Speaker 2: is actually going to being dispatched, so you have you 441 00:30:11,120 --> 00:30:14,240 Speaker 2: don't have to do all these non productive moves in 442 00:30:14,360 --> 00:30:18,160 Speaker 2: a in a yard. So there's there's many many opportunities 443 00:30:18,760 --> 00:30:20,920 Speaker 2: for how we can use this, I would say it's 444 00:30:21,040 --> 00:30:24,800 Speaker 2: still still early days of the solutions that we are 445 00:30:24,960 --> 00:30:25,760 Speaker 2: that we're voting out. 446 00:30:27,040 --> 00:30:29,440 Speaker 1: And when you're talking about, like, you know, using tech 447 00:30:29,520 --> 00:30:33,200 Speaker 1: for the forwarding business, is this about like automation where 448 00:30:33,640 --> 00:30:36,600 Speaker 1: you know a lot of forwarders and freight brokers out 449 00:30:36,640 --> 00:30:41,479 Speaker 1: there like to talk about how you know, some orders 450 00:30:41,680 --> 00:30:45,280 Speaker 1: or some transactions don't even involve a human. So it's 451 00:30:45,320 --> 00:30:47,840 Speaker 1: from the email with the quote that comes in through 452 00:30:47,880 --> 00:30:51,120 Speaker 1: the execution is all done through machine learning and AI. 453 00:30:51,600 --> 00:30:53,200 Speaker 1: Is that the stuff that you guys are building on 454 00:30:53,240 --> 00:30:54,000 Speaker 1: the forwarding side. 455 00:30:54,600 --> 00:30:59,240 Speaker 2: I would say that's to come. Okay, we're not there yet, 456 00:31:00,160 --> 00:31:02,200 Speaker 2: but that's definitely one of the areas where you can 457 00:31:02,240 --> 00:31:03,440 Speaker 2: do something right. 458 00:31:04,000 --> 00:31:07,600 Speaker 1: And so you know it's you know, we're almost on 459 00:31:08,000 --> 00:31:10,160 Speaker 1: by the time this comes this episode comes out, will 460 00:31:10,200 --> 00:31:14,200 Speaker 1: be October twenty twenty five is going to be gone 461 00:31:14,240 --> 00:31:16,520 Speaker 1: in a blink of an eye. So when you're looking 462 00:31:16,600 --> 00:31:19,840 Speaker 1: forward into next year, what do you think twenty twenty 463 00:31:19,920 --> 00:31:22,840 Speaker 1: six is going to hold for DP world versus you know, 464 00:31:23,040 --> 00:31:26,080 Speaker 1: the the crazy year that was twenty twenty five. 465 00:31:28,080 --> 00:31:34,080 Speaker 2: I'm actually very excited going into twenty twenty six. As 466 00:31:34,120 --> 00:31:39,959 Speaker 2: I said, especially in our South America side of the business, 467 00:31:40,040 --> 00:31:42,720 Speaker 2: where we're all in the majority of our ports hoars well, 468 00:31:43,400 --> 00:31:47,080 Speaker 2: every more or less every facility is operating at a 469 00:31:47,320 --> 00:31:51,520 Speaker 2: very very high utilization. So we have, as I mentioned earlier, 470 00:31:51,640 --> 00:31:57,800 Speaker 2: we have some big expansions going on to increase our capacity. 471 00:31:59,320 --> 00:32:06,920 Speaker 2: We working on different contract logistics solutions and and growth solutions. 472 00:32:08,240 --> 00:32:11,480 Speaker 2: I think especially in the in the tech industry here 473 00:32:11,520 --> 00:32:14,959 Speaker 2: in the US, I think we are all. We all 474 00:32:15,080 --> 00:32:19,880 Speaker 2: see the growth in data centers in the US, so 475 00:32:20,000 --> 00:32:23,120 Speaker 2: I see a lot of opportunities there also in retail 476 00:32:23,240 --> 00:32:27,320 Speaker 2: and e commerce. And a new thing that we have 477 00:32:27,440 --> 00:32:30,440 Speaker 2: rolled out this year is starting up with multi user 478 00:32:30,960 --> 00:32:35,640 Speaker 2: warehouses around the US. Traditionally, for the for the cel business, 479 00:32:36,280 --> 00:32:39,280 Speaker 2: we get a contract with the customer and then we 480 00:32:39,960 --> 00:32:42,760 Speaker 2: retail our solutions for that customer here and now we're 481 00:32:42,760 --> 00:32:47,280 Speaker 2: going out doing multi user facilities. So we might have 482 00:32:47,560 --> 00:32:50,080 Speaker 2: an anchor customer to start with, but we will have 483 00:32:50,160 --> 00:32:52,520 Speaker 2: a lot of white space that we're going out to 484 00:32:53,080 --> 00:32:56,720 Speaker 2: sell to to other customers. So that's a new way 485 00:32:56,840 --> 00:32:59,720 Speaker 2: of doing contract logistics for us in the in the 486 00:32:59,880 --> 00:33:02,760 Speaker 2: U with a little more traditional and what we have 487 00:33:02,880 --> 00:33:05,800 Speaker 2: done in South America. So I see a lot of 488 00:33:05,880 --> 00:33:10,800 Speaker 2: opportunities for growth and how we can we can tie 489 00:33:11,080 --> 00:33:16,080 Speaker 2: all our different solutions together and present the customer with 490 00:33:16,200 --> 00:33:19,880 Speaker 2: that with a good into end solution, which is really 491 00:33:19,960 --> 00:33:22,160 Speaker 2: what we are trying to do and what we're saying 492 00:33:22,200 --> 00:33:26,640 Speaker 2: DEPOL is from from factory flow to customer doll So 493 00:33:27,040 --> 00:33:30,080 Speaker 2: without global presence that we have, I think that the 494 00:33:30,160 --> 00:33:32,440 Speaker 2: future is looking bright for for DEPO. 495 00:33:33,240 --> 00:33:36,720 Speaker 1: And when you're talking about the multi customer warehousing in 496 00:33:36,760 --> 00:33:40,960 Speaker 1: the US that you're looking to expand upon, is that 497 00:33:41,160 --> 00:33:42,520 Speaker 1: mostly e commerce business? 498 00:33:44,920 --> 00:33:47,360 Speaker 2: I wouldn't say mostly that the e commerce can be 499 00:33:47,440 --> 00:33:51,160 Speaker 2: a part of it, but you can really handle any 500 00:33:51,240 --> 00:33:55,640 Speaker 2: types of business, any type of commodities in the in 501 00:33:55,720 --> 00:33:58,760 Speaker 2: the multi user warehouse. Yeah. Yeah. And then. 502 00:34:00,560 --> 00:34:04,880 Speaker 1: Obviously, you know we mentioned twenty twenty five was there 503 00:34:05,000 --> 00:34:08,960 Speaker 1: was a lot of volatility and uncertainty. Are you expecting 504 00:34:09,120 --> 00:34:11,440 Speaker 1: more of the same in twenty twenty six outside the 505 00:34:12,080 --> 00:34:14,279 Speaker 1: you know, the DP specific things that you guys are 506 00:34:14,360 --> 00:34:15,360 Speaker 1: doing looking for growth. 507 00:34:16,000 --> 00:34:20,480 Speaker 2: That's a very good question. I think in today's world 508 00:34:20,560 --> 00:34:25,680 Speaker 2: we see we see changes constantly, right, and I think 509 00:34:25,760 --> 00:34:29,839 Speaker 2: that's that's one of the key words to be successful 510 00:34:29,880 --> 00:34:33,200 Speaker 2: in our industry as it's being able to to be 511 00:34:33,320 --> 00:34:37,680 Speaker 2: agile and being able to pivots as things are changing. 512 00:34:39,360 --> 00:34:42,640 Speaker 2: So do I expect it to be more volatile or 513 00:34:42,719 --> 00:34:47,000 Speaker 2: the same. It's it's very difficult to predict. I think 514 00:34:47,080 --> 00:34:50,040 Speaker 2: the last the last two for eighteen months as for 515 00:34:50,200 --> 00:34:51,279 Speaker 2: sure that that's the case. 516 00:34:51,840 --> 00:34:55,040 Speaker 1: You know, environmental issues are still top of mind for 517 00:34:55,120 --> 00:34:59,440 Speaker 1: a lot of folks, especially companies outside the United States. 518 00:35:00,160 --> 00:35:02,720 Speaker 1: Could you talk about, you know, DP World their approach 519 00:35:03,320 --> 00:35:05,760 Speaker 1: to lowering their carbon foot preiter emissions. 520 00:35:06,280 --> 00:35:09,680 Speaker 2: We have, we have very aggressive targets to do this. 521 00:35:09,880 --> 00:35:13,440 Speaker 2: We we aim to be net zero by by twenty fifty. 522 00:35:15,000 --> 00:35:18,279 Speaker 2: I'm actually proud to work for Deep World because we 523 00:35:18,520 --> 00:35:23,080 Speaker 2: we have taken a very aggressive approach in investing in 524 00:35:23,400 --> 00:35:31,680 Speaker 2: electrification up front, so actually replacing traditional diesel equipment before 525 00:35:31,719 --> 00:35:36,759 Speaker 2: the end of life in order to accelerate the the 526 00:35:36,880 --> 00:35:42,120 Speaker 2: reduction of carbon emissions. So there is a there is 527 00:35:42,160 --> 00:35:45,160 Speaker 2: a guideline in Deep World that we cannot buy diesel 528 00:35:45,239 --> 00:35:49,520 Speaker 2: equipment anymore. So whenever we do replace them in equipment, 529 00:35:50,280 --> 00:35:54,480 Speaker 2: if we start off new facilities, all our equipment from 530 00:35:54,719 --> 00:35:59,200 Speaker 2: light vehicles to folk lifts to the big Yark cranes, 531 00:35:59,640 --> 00:36:05,279 Speaker 2: Horse hundred transporter, that we have everything is electrified. So 532 00:36:05,480 --> 00:36:08,120 Speaker 2: we actually on a on a very good path to 533 00:36:08,800 --> 00:36:11,759 Speaker 2: achieve that across the deep people. We're also looking at 534 00:36:12,440 --> 00:36:17,200 Speaker 2: how can we look at a clean energy sources. In Chile, 535 00:36:17,320 --> 00:36:20,040 Speaker 2: for example, all our energy is sourced one hundred percent 536 00:36:20,160 --> 00:36:25,840 Speaker 2: from clean energy. In Dominican Republic, we're running a major 537 00:36:26,160 --> 00:36:29,719 Speaker 2: solar project. So with the economic zone that we have 538 00:36:29,920 --> 00:36:34,520 Speaker 2: and today we have around one hundred and sixty thousand 539 00:36:34,640 --> 00:36:40,160 Speaker 2: square meters of warehouse, we put solar on all the warehouses. 540 00:36:40,440 --> 00:36:42,640 Speaker 2: So we have a project now to go up where 541 00:36:42,680 --> 00:36:46,000 Speaker 2: we can produce up to twelve meg of solar and 542 00:36:46,120 --> 00:36:49,200 Speaker 2: we can actually be self sufficient byronic solar. 543 00:36:49,640 --> 00:36:53,600 Speaker 1: Great. So is there anything on the horizon that the 544 00:36:53,680 --> 00:36:56,719 Speaker 1: supply chains and logistics industries might be facing that are 545 00:36:56,760 --> 00:36:58,320 Speaker 1: on your that are on your radar. 546 00:36:59,000 --> 00:37:01,879 Speaker 2: I can't think of any thing like new I think 547 00:37:01,920 --> 00:37:07,239 Speaker 2: there's there's a lot of disruption already going on that's 548 00:37:07,440 --> 00:37:10,399 Speaker 2: that we have to deal with. If if I look 549 00:37:10,480 --> 00:37:15,239 Speaker 2: at at the America's region, I see generally a lack 550 00:37:15,520 --> 00:37:18,120 Speaker 2: of capacity, and now I'm talking about the port side 551 00:37:18,160 --> 00:37:22,560 Speaker 2: of the business. There's generally a lack of capacity in 552 00:37:23,000 --> 00:37:26,279 Speaker 2: the region, especially in in in South America, where you 553 00:37:26,360 --> 00:37:30,879 Speaker 2: will see most port not not just deeply world operated facilities, 554 00:37:30,920 --> 00:37:36,799 Speaker 2: but most ports are full running at max capacity. As 555 00:37:36,840 --> 00:37:40,080 Speaker 2: I mentioned earlier, you cannot just create capacity from from 556 00:37:40,160 --> 00:37:45,000 Speaker 2: one day to another. So the ability to become more efficient, 557 00:37:45,120 --> 00:37:49,200 Speaker 2: the ability to to actually create more capacity for expansions, 558 00:37:49,840 --> 00:37:52,479 Speaker 2: is going to be critical for the coming years. 559 00:37:53,200 --> 00:37:55,839 Speaker 1: Got yeah, and how did how did you find your 560 00:37:55,880 --> 00:37:58,000 Speaker 1: way into the transportation markets? 561 00:37:58,880 --> 00:38:03,600 Speaker 2: I start out of the in Mersk back in nineteen 562 00:38:03,719 --> 00:38:07,200 Speaker 2: ninety two in Denmark as a trainee, and then in 563 00:38:07,360 --> 00:38:10,239 Speaker 2: nineteen ninety five I was I was in to South 564 00:38:10,239 --> 00:38:14,560 Speaker 2: Africa and I've basically been the next pat in this 565 00:38:14,760 --> 00:38:20,280 Speaker 2: industry since then. So I worked in South Africa, in Angola, 566 00:38:20,680 --> 00:38:25,239 Speaker 2: I've been twice in the Netherlands, and then I've been 567 00:38:25,360 --> 00:38:27,040 Speaker 2: now in this part of the world, and that the 568 00:38:27,120 --> 00:38:30,520 Speaker 2: Manica Republic. I ran the Medicare Republic and the business 569 00:38:30,600 --> 00:38:34,319 Speaker 2: we have down there for for almost what twelve years? 570 00:38:35,320 --> 00:38:39,799 Speaker 2: For DP world, it's kind of you. We always joke 571 00:38:40,080 --> 00:38:42,920 Speaker 2: either you love or you hate this. If you love it, 572 00:38:43,239 --> 00:38:46,520 Speaker 2: you're stuck and you can't get out of it. And 573 00:38:47,000 --> 00:38:48,200 Speaker 2: I think I'm a victim to that. 574 00:38:48,840 --> 00:38:52,520 Speaker 1: Was there anything that inspired you back in nineteen ninety 575 00:38:52,560 --> 00:38:56,080 Speaker 1: two to apply to that trainee position. 576 00:38:57,239 --> 00:38:59,880 Speaker 2: At merisk To be completely honest with you, I was 577 00:39:00,719 --> 00:39:04,279 Speaker 2: entirely show what I wanted to do back then when 578 00:39:04,320 --> 00:39:06,920 Speaker 2: I was lucky, I got into at a good industry. 579 00:39:07,480 --> 00:39:10,399 Speaker 2: And the thing, as I say, like either you love 580 00:39:10,560 --> 00:39:14,560 Speaker 2: you hated. This is a very dynamic business. Things change 581 00:39:15,000 --> 00:39:18,440 Speaker 2: every single day, and I think that's that's part of 582 00:39:18,520 --> 00:39:23,200 Speaker 2: what what fascinates me working for Deep World is is 583 00:39:23,840 --> 00:39:28,120 Speaker 2: great because we are very very ambitious. If you look 584 00:39:28,120 --> 00:39:32,279 Speaker 2: at our history and you I've seen our growth has 585 00:39:32,360 --> 00:39:36,520 Speaker 2: been incredible, and I see us growing a lot a 586 00:39:36,600 --> 00:39:38,399 Speaker 2: lot more in in the coming years. 587 00:39:39,560 --> 00:39:41,719 Speaker 1: And before I let you go, I was like asking, 588 00:39:41,840 --> 00:39:44,560 Speaker 1: my guess, is is there a book on you know, 589 00:39:44,880 --> 00:39:48,440 Speaker 1: the freight market or leadership that's kind of close to 590 00:39:48,520 --> 00:39:50,440 Speaker 1: your heart that you like to recommend to people. 591 00:39:50,880 --> 00:39:55,480 Speaker 2: If a book on nder on the market, not not necessarily. 592 00:39:55,600 --> 00:39:58,440 Speaker 2: One one I'm reading right now is The Cold War 593 00:39:58,520 --> 00:40:03,520 Speaker 2: two by by Jason Schenker. He's an economist. I'm here 594 00:40:03,560 --> 00:40:06,440 Speaker 2: in the US that we have actually used a lot 595 00:40:06,920 --> 00:40:12,040 Speaker 2: as a speaker, and he has a very interesting perspective 596 00:40:12,120 --> 00:40:15,239 Speaker 2: on the economy, and I think it is often right 597 00:40:15,920 --> 00:40:19,560 Speaker 2: in predicting what's going to happen in the future. Now, 598 00:40:19,680 --> 00:40:22,560 Speaker 2: so that's I just started it. But it's a very 599 00:40:22,560 --> 00:40:23,160 Speaker 2: interesting book. 600 00:40:23,920 --> 00:40:25,800 Speaker 1: All right, great, well, I really want to thank you 601 00:40:25,880 --> 00:40:26,600 Speaker 1: for your time Warton. 602 00:40:26,680 --> 00:40:29,959 Speaker 2: This is great, no pleasure. Thanks for the opportunity, all right. 603 00:40:29,840 --> 00:40:31,600 Speaker 1: And I want to thank you for tuning in. If 604 00:40:31,640 --> 00:40:34,280 Speaker 1: you like the episode, please subscribe and leave a review. 605 00:40:34,840 --> 00:40:37,240 Speaker 1: We've lined up a number of great guests for the podcast, 606 00:40:37,320 --> 00:40:42,839 Speaker 1: so please check back to hear conversations with C suite executives, shippers, regulators, 607 00:40:42,960 --> 00:40:46,440 Speaker 1: and decision makers within the freight markets. Also, if you 608 00:40:46,480 --> 00:40:49,239 Speaker 1: want to learn more about the freight transportation markets, check 609 00:40:49,280 --> 00:40:52,279 Speaker 1: out our work on the Bloomberg Terminal at Bigo and 610 00:40:52,440 --> 00:40:55,640 Speaker 1: on social media. This is Lee Clasgow signing off and 611 00:40:55,719 --> 00:40:58,359 Speaker 1: thanks for talking transports with me. Talk to you next week.