Kuehne+Nagel, a global leader in logistics, is set to fortify its cross-border road logistics services in the dynamic markets of Southeast Asia and China through the acquisition of City Zone Express, a subsidiary of Chasen Holdings Ltd., listed on the Singapore Exchange Mainboard.
Strategic Expansion in Asia
Established in 2006 and headquartered in Malaysia, City Zone Express boasts a workforce of over 500 employees, operating across key markets such as Malaysia, Singapore, Vietnam, Thailand, and China. The acquisition aligns seamlessly with Kuehne+Nagel’s Roadmap 2026 growth initiatives, reflecting the company’s commitment to expanding its footprint in Asia.
Immediate Impact on Logistics Landscape
The acquisition positions Kuehne+Nagel to immediately enhance its cross-border road logistics service offerings in the region. City Zone Express, equipped with a fleet of 260 vehicles and 80,000 square meters of warehousing space, brings a robust infrastructure that complements Kuehne+Nagel’s existing network and logistics expertise.
Catering to Booming Industries
As Southeast Asia emerges as a vital manufacturing hub, particularly for high-tech and e-commerce sectors, this strategic move allows Kuehne+Nagel to provide tailored road logistics solutions in complex cross-border environments. The extended offering, combined with Kuehne+Nagel’s eTrucknow visibility platform, is poised to benefit customers in booming local industries.
Hansjörg Rodi, Member of the Management Board at Kuehne+Nagel International AG, expressed enthusiasm about the acquisition: “Asia’s economies are an attractive area for us to develop our road logistics services in line with our Roadmap 2026. With City Zone Express, we acquire a reputable regional player whose network and capabilities ideally complement our own.”
Founders’ Perspective
Founder of City Zone Express, S. Pirithivaraj A/L Selvarajoo, shared his excitement, stating: “We are thrilled and privileged to become a member of the Kuehne+Nagel Group, an industry leader in air and sea freight, and a renowned player in road freight. With our combined footprint in road logistics, we can better meet the growing demand for road logistics services in Southeast Asia.”
Closing the Deal
The completion of the transaction is anticipated in the coming months, pending approvals from regulatory authorities and Chasen Holdings’ shareholders. This strategic acquisition marks another significant step for Kuehne+Nagel in strengthening its position as a key player in the ever-evolving landscape of maritime, breakbulk, project freight, cargo, and logistics.
