1 min read.Updated: 30 Jul 2021, 01:11 PM ISTLivemint
ECU Worldwide will hold a 65% share in the JV, and the balance 35% will be held by present owners of Nordicon. With this, ECU Worldwide will have a nearly 40% market share of the LCL business in the Nordic region
BENGALURU: Allcargo Logistics Ltd on Friday said its subsidiary Allcargo Belgium NV, operating ECU Worldwide network, a global multi-modal logistics major, has signed a definitive joint venture agreement with Nordicon Group.
ECU Worldwide will hold a 65% share, and the balance 35% will be held by present owners of Nordicon. With this investment, ECU Worldwide will have a nearly 40% market share of the less-than-container-load (LCL) business in the Nordic region.
The agreement expands ECU Worldwide’s service network and global reach, adding a new geography and a specialized rail freight consolidation service to expand further across Europe. This partnership will help better serve customers who are looking at flexible and time-bound logistics solutions in the Nordic region.
Shashi Kiran Shetty, chairman, Allcargo Logistics, ECU Worldwide, and Gati Ltd., said, “The partnership with Nordicon is in line with our vision of consolidating our market leadership and working with entrepreneurial teams to expand into new territories who share our vision for digital innovation for the logistics sector. Nordicon is led by a strong and capable team, and we are very pleased to welcome them into the larger ECU Worldwide family.."
“Nordicon has an innovative asset-light rail consolidation business which opens new opportunities for ECU Worldwide across Europe," said Ravi Jakhar, Chief Strategy Officer, Allcargo Logistics Ltd. “Nordicon’s integration with the ECU network will lead to incremental business revenue and margins at existing ECU offices across the world. This is a high value accretive deal for ECU Worldwide and Allcargo and will create value for stakeholders."