Transworld Group in warehouse expansion talks

Dubai: Dubai-based Transworld Group is in talks with Jebel Ali Free Zone (Jafza) for a 100,000 square metre plot to build additional warehouse space on by 2017, Chairman Ramesh S. Ramakrishnan said on Wednesday.

The shipping and logistics company, which also has a presence in India and the United States, is expanding to meet burgeoning demand.

“The UAE has been growing very strong for us … the logistics segment is truly looking at a very strong reemergence in this market,” Ramakrishnan said in an interview.

The group is presently looking elsewhere in the immediate term due to meet existing demand at its 40,412 square metre plot in Jafza.

“We are taking space from others as well using outsourced space,” Ramakrishnan said.

Ramakrishnan declined to state how much Transworld has earmarked for the investment because it is still conducting its feasibility study for the development.

However, Ramakrishnan said unlisted Transworld is “very liquid” when asked about its financing and is growing at between 15 and 20 per cent across the group this year, with India the major driver. Ramakrishnan said the group said it posted $228.2 million in revenue for the financial year ending March 31.

On Monday, shipping association BIMCO said in a note, “The global shipping industry finds no grace from much stronger economic activity going forward, as the global recovery remains fragile and uneven.”

Ramakrishnan said this year the group has acquired three container vessels and a series of shipping containers including 2,000 refrigerated containers.

Ramakrishnan said the group, which is looking at other vessel acquisitions, will lift its presence in Doha with the opening of a permanent office in the next six months.