Movers and shakers

As we entered 2024, the focus was on strategies to shore-up supply chain resilience against future crises, as well as the diversification of sourcing strategies. Nearshoring, friendshoring, or plus-one sourcing strategies had become common phrases in the project logistics vernacular. That shift, however, was expected to be a super-marathon, not a sprint.

Still, as we moved through the year, there was plenty of evidence that those strategies were being implemented. Many key players expanded their footprint to target new markets or reinforce their positions.

Major moves: mergers, acquisitions, and expansions

Most notably, and after years of speculation, DB Schenker was eventually sold. Danish logistics firm DSV beat out competition from roughly 25 interested parties for the German forwarder, acquiring the business for a cool EUR 14.3 billion (USD15.3 billion) bid. The deal is not without its detractors, but regulatory approvals are expected to be in place by 2025.

February also saw CMA CGM Group complete the acquisition of Bolloré Logistics, and the start of its journey integrating the entity with its Ceva business unit.

In particular, the Middle East and Asia have been picked out as popular regions for companies to explore. Middle Eastern nations have been pressing ahead with massive capital investments into oil and gas projects, providing a steady stream of heavy lift and project cargo business. Qatar and Saudi Arabia were the standout markets.

Qatar’s most striking projects relate to its gas sector as it moves to massively increase LNG exports from 77 million tonnes per year presently to 142 million tonnes annually by 2027. Moreover, it is attempting to bolster regional trade and develop infrastructure, while progressing with sustainability and digitalisation programmes. Saudi Arabia’s Vision 2030 programme has been the catalyst for dozens of ‘giga-projects’ as it attempts to, eventually, diversify away from its fossil-fuel led economy. However, disquiet about how to finance the truly staggering range of projects came to a head this year, with many scaled back. Still there is still plenty of optimism about the project logistics market regarding these projects, Moreover, the country’s oil and gas market shows little sign of slowing. Tellingly, in February, Aramco said that its capex plans are “for a future in which we believe oil and gas will be a key part of the global energy mix for many decades to come, alongside new energy solutions”.

Ceva Logistics established and formed a joint venture (JV) with Almajdouie of Saudi Arabia, with the two firms targeting various industries ranging from Saudi energy and petrochemicals to automotive and e-commerce. Japan-headquartered heavy lifting and transportation specialist Denzai opened Denzai Arabia as it looks to expand its reach in the Middle East. It also established a branch office in Ulsan, South Korea.

Still, a watching brief is very much in effect given the volatility arising of developments in Israel, Gaza, Lebanon and Syria.

Opportunities in Asia, and beyond

One of the main trends affecting movements in Southeast Asia nowadays is that many companies – including those involved in or reliant on the heavy lift and breakbulk sectors – have diversified their sourcing so as not to rely exclusively on China, where costs have been rising. It is a trend that actually began following the start of Sino-American trade tensions, with the resulting tariffs on Chinese exports for US projects, and exacerbated by the pandemic.

Southeast Asia is reaping the benefits as manufacturers switch production to locations such as Vietnam, Thailand and Malaysia, which have well-developed capabilities already. Moreover, the whole region is moving away from coal to natural gas, a shift that is “not only transforming the regional energy landscape but also positioning southeast Asia as a central figure in addressing global energy demands”, according to Energy Council, a network of senior energy executives. The shift to renewables may have been somewhat slower than many would have hoped, although groundwork is being laid for the offshore wind business, particularly in South Korea.

Blue Water Shipping for instance, signed a Memorandum of Understanding (MoU) with Cyan Renewables to support the deployment, operation and maintenance of offshore wind projects in Asia Pacific; it also acquired South Korea’s Zodiac Solutions. (It was a busy year for Blue Water, which also opened offices in Walvis Bay, Namibia and Cape Town, South Africa, whilst establishing a project logistics hub in Bremen, Germany, too).

Shipping group Maersk inked an MoU with wind turbine manufacturer Vestas to build a nacelle manufacturing plant and logistical base for offshore wind turbines at the Mokpo New Port Hinterland Complex in South Korea.

Additionally, in September, Denmark’s Port Esbjerg entered into a strategic collaboration with South Korea’s port of Ulsan. The gateways plan to share their respective experience in industrial production, car exports, and hydrogen/ammonia production, and the wind energy markets.

Of course, going forward, all eyes will be on Yoon Suk Yeol, South Korea’s current president, who on December 3 imposed martial law before backtracking a day later. The opposition party moved to impeach the president.

Militzer & Münch was also been busy in Asia this year, forming a JV in Mongolia, opening an office in Mumbai, and taking a stake in an international logistics service provider in Indonesia.

Sarens has a long track record of successful JVs and strategic alliances and 2024 saw a swathe of new deals agreed. In October 2024, Empire Energy Partners’ offshore division signed an MoU framework agreement with Sarens to enhance the development of offshore wind projects in the USA.

Sarens also teamed up Mozambique-based transport company Transportes Lalgy to help bolster infrastructure development across various sectors in Mozambique. In November, it joined Brazil’s Prumo Logística and the port of Açu in an MoU to study logistics solutions that would support the offshore wind energy business. In Europe, it bolstered its footprint in both Slovakia and Estonia with new offices. As the year closed out, Sarens signed an MoU with Brazil’s Prumo Logística and the port of Açu.

Sticking the with the world of transport engineering, Mammoet formed a strategic partnership with Aertssen Machinery Services (AMS) at the start of the year with the aim of providing comprehensive heavy lifting and project cargo services in Qatar.

September saw Mammoet and Samyang Marine Group enter into a new partnership to support South Korea’s growing offshore wind industry. With the country’s expanding offshore wind market, Mammoet and Samyang Marine Group highlighted the need for improved infrastructure, along with specialised logistics, handling, construction, and installation services.

South Africa-headquartered heavy transport and rigging specialist Vanguard also saw enough potential in the Asian market to open a new office in Hong Kong during July. Roll Group, meanwhile, moved to larger premises in Thailand during July.

Hotbed of activity

The USA remained hotbed of activity through 2024, with many of those spoken with through the year busy moving project cargoes – particularly in support of the power grid. The offshore wind energy industry, too, found its footing with projects accelerating at the start of 2024.

The Big Wires and Chips acts both proved to be a boon for the project logistics sector. In March 2024, a former coal power plant in Ohio that had been repurposed into a port to unload barges started receiving loads headed for Intel’s 1,000-acre (404.7 ha) New Albany semiconductor manufacturing campus, a USD28 billion project with two production facilities slated for completion by the end of 2026. The logistics scope calls for 24 massive moves.

In June 2024, a 916,000 lbs (415.5 tonnes) air compressor used for silicon chip manufacturing was unloaded ahead of being moved across the state. The New Albany campus, described by Intel ceo Pat Gelsinger as “the largest AI chip manufacturing plant in the world”, is one of four semiconductor facility projects that Intel has planned for the USA.

DHL Industrial Projects has been active in the semiconductor logistics arena, drawing on the company’s involvement in the sector for non-project logistics services. For the most part, it is working closely with the Engineering, Procurement, and Construction contractors (EPCs) that are aligned with the chip makers. Jake Swanson, vice president and head of industrial projects, at the company, describes this segment as “a very hot and active sector, especially in the USA”, adding that he expects it to grow over the next five to 10 years. “Eight years ago, I would not have said anything about semiconductors, but now we’re really seeing that sector grow. It’s unique – in terms of the types of cargo, the requirements. It requires different kinds of solutions, for example in storage,” he said.

However, as the year progressed, some industry verticals found themselves stuck in a holding pattern awaiting the outcome of the presidential election. With Donald Trump’s victory assured during November, oil and gas looks set to benefit while support for renewable energy projects is expected to wane. Many of those spoken with for HLPFI expect there to be plenty of work to go around, although a close eye is being paid to the potential raft of tariffs that Mr Trump’s government aims to introduce.

Consolidation was very much on the agenda among the USA’s heavy haulage and transport players, no more so than at Barnhart Crane and Rigging. Continuing the form seen in 2023, it increased its footprint and fleet this year with deals for Mountain States Crane of Albuquerque (New Mexico), CR Holland Crane Service of Forest City (Iowa), Baxter Crane and Rigging (Mississippi), South Carolina-based White Crane, and Canada’s NCSG.

2024 also saw Texas-based BOSS Heavy Haul, a subsidiary of BOSS Crane & Rigging, acquire the heavy haulage fleet and personnel of Cowboy’s Services’ CSI Heavy Haul division. The company also established a new location just south of Atlanta, Georgia, as well as terminal in Dayton, Texas.

Trailer manufacturer Faymonville, meanwhile, took the plunge Stateside and selected a site in Little Rock, Arkansas for its first USA production facility. The first phase of development comprises 38,000 sq m of production area. In phase two, the site will expand to 58,000 sq m. Faymonville plans to invest some EUR92 million (USD100 million) in the facility.

Beneficiaries of geopolitical strife

India has also been a hotbed of activity – a beneficiary of both a diversification away from China and strong government policies to facilitate foreign investment. Project logisticians and heavy transport companies were among those targetting the world’s most populous market. AsstrA Associated Traffic opened an office in Mumbai, Bremer Lloyd put roots down in Chennai, while Belgium-headquartered Aprojects has acquired Indian logistics company Super Freight in a bid to tap into the flourishing market.

Türkiye, too, received its fair share of attention. Our upcoming January/February 2025 report on the market highlights a heavy industrial sector that’s thriving with robust demand for logistics services, especially in supporting large-scale infrastructure and energy projects. Large-scale petrochemical projects have kept some players in the market busy while an ambitious plan to massively boost renewable energy capacity and nuclear power bodes well for the years to come.

Türkiye’s economic landscape has presented certain challenges; inflation and currency fluctuations have impacted the cost of materials, fuel and operational expenses in the project logistics sector. These dynamics have also led to some adjustments in investment timelines for essential infrastructure, energy and petrochemicals projects. Meanwhile, the Russia/Ukraine conflict has disturbed traditional cargo routes and increased demand for alternative corridors through Türkiye. As a result, the country serves as a more prominent transit hub between Europe, Asia and the Middle East, especially for strategic cargo transportations and energy supplies.

Over the course of 2024, we saw Noatum Maritime, part of AD Ports Group, open an office in Türkiye as it reinforces its services across the Mediterranean region. Aprojects has opened a branch office in Istanbul, as it aims to strengthen its international presence, while Spain-headquartered Erhardt Projects also set roots down in Istanbul as it targets the Eurasian market.

Europe has proven to be something of a problem child when it comes to the heavy lift and project logistics market. Germany’s economic malaise has been compounded by a collapse in government. France’s leadership isn’t faring much better. With so much volatility about the world presently, it’s something of a concern that two of Europe’s economic and political heavyweights aren’t firing on all cylinders.

Still, the renewal of the UK’s power generation infrastructure has kept project logisticians and heavy lift service providers busy and the offshore wind sector has bounced back from a dismal 2023. Still, it seems to be an uphill battle with the authorities when it comes to executing the work that, to all intents and purposes, is critical to achieving net-zero. Moreover, the new government’s first budget has piled pressure on businesses. Time will tell if reforms to planning laws help to spur on project developments.

The Caspian and Baltic regions have both been impacted significantly with the drive towards domestic alternative energy production a priority for governments. Poland’s investments in new energy infrastructure over the past few years, particularly wind and nuclear energy, have been at the forefront of the logistic sector’s thinking.

UTC Overseas opened an office in Gdańsk, Poland to provide logistics and engineering services to Poland’s growing project and industrial manufacturing sectors, while Logistics Plus (LP) opened a branch in Denmark to serve the Scandinavian market. deugro, meanwhile, reaffirmed its commitment to the growth of its wind energy division in Europe with further expansion at its green energy logistics hub in Germany.

Kerry Logistics  established a project division in Nantes, France. Belgium-headquartered lifting, transportation, construction and engineering services provider Dufour Group has acquired compatriot heavy lift and transport company Jean Boutique. Moreover, Drewes Logistics and Martrade Shipping have established DREMAR, which has secured a major contract for the Rhine water transport pipeline.

We also saw Hamburg-based logistics company Fr. Meyer‘s Sohn acquire the majority of shares in the project logistics company Breeze (Germany). 

In the UK, Heavy Lift Projects & Port Services was established as a subsidiary of UK-based contract lift specialist Notus Contract Lifting. The company offers heavy lift and transportation services, breakbulk and project cargo handling, industrial and commercial storage and project management and is led by Liam McLoughlin, co-owner, and managing director.

Moreover, CLdN acquired Broekman Distriport Real Estate and its subsidiary Broekman Distriport in Rotterdam, the Netherlands, as Broekman Logistics fine-tunes its focus on project cargo services. Furthermore, Spanish logistics service provider Bergé set up an industrial process logistics division, which focuses on consolidating industrial logistics activity for the automotive and steel industries.

Noteworthy news also came in July 2024 in the European shortsea sector, Uniatlantico acquiring a majority stake in EMS Chartering, Fehn Ship Management, and Northwest Competence. Moreover, Palermo-headquartered Italian Shipping & Logistics Agency (also part of EMS-Fehn-Group) acquired all shares in Esterminal Europea Servizi Terminalistici (EST).

In Latin America, a green light for oil and gas development in Suriname heralds the next spate of project logistics activity. On October 1, TotalEnergies and APA Corporation announced their decision to go ahead with plans for oil and gas extraction off the coast of Suriname. The drilling in two areas, jointly labelled ‘Gran Morgu’, is expected to yield over 700 million barrels.

TotalEnergies aims to begin output from the USD10.5 billion project in the first half of 2028. The long-awaited decision sets off a surge in activity among project logistics specialists and other heavy lift service providers. UTC Overseas intends to open an office in Suriname in the near future. Trinidad-based Cargo Consolidators Agency also has had its eye on Suriname as the next hotspot in the region after Guyana, according to managing director Sean Patience. In anticipation of the green light for the Gran Morgu development, Blue Water Shipping’s office in Paramaribo, Suriname, went fully operational at the end of 2023. 

The Suriname government wants to follow in the footsteps of Guyana, where a consortium led by ExxonMobil has discovered over 11 billion barrels of oil and gas equivalents. Activity is in overdrive thanks to ongoing oil and gas extraction and the development of supporting infrastructure, from port development to the replacement of a large floating bridge with a fixed structure to facilitate the transport of equipment.

“Guyana is where the big action is happening,” said UTC’s Vincent Dumont, global project advisor. He sees ample opportunities for other developments in the country, but oil and gas is the catalyst that is driving the economy and fuelling other ventures, he explained.

The path ahead

Looking ahead to 2025, optimism remains a hallmark of the project logistics and heavy transport sectors, buoyed by strong underlying fundamentals. While there will be a bump in the road of the energy transition, its momentum continues to gather. As it progresses, traditional energy markets should drive sustained activity for the project logistics business. Large-scale civil infrastructure projects, critical in both developed and emerging markets, are poised to provide ample opportunities for the industry as governments and private investors seek to modernise and expand key assets. Mined resources, too, have a critical role to play in both the traditional and emerging verticals that will create work for the project logistic sand heavy transport market.

Market dynamics are showing signs of stabilisation, with shipping rates finding equilibrium amid improved supply-demand balance. Recent interest rate cuts in the USA and EU have been broadly welcomed. Meanwhile, China’s long-awaited government stimulus package is expected to spur domestic consumption and facilitate bank lending, potentially alleviating the pressure it has found itself while stimulating export activity. Despite lingering uncertainties, the prevailing sentiment remains one of resilience and pragmatism: the industry must focus on navigating what can be controlled while adapting to an ever-shifting global landscape. HLPFI will be here to keep abreast of the developments.