[NOL,Acquisition of APL Due to Be Finished By Mid-Month]

Neptune Orient Lines Ltd(NOL) and APL Limited(APL) announced that the
review period of the U. S. Secretary of Transportation for the approva
ls of the U.S. Maritime Administration related to its acquisition of,
Oakland, California has been completed. The transaction is expected t
o close on 12 November 1997 at which time APL will become a wholly-own
ed subsidiary of NOL.
Arising from this merger, NOL will be one of the top five container sh
ipping companies in the world offering to its customers total integrat
ed transportation and related services worldwide. NOL will operate a
total fleet of 113 vessels, including 76 containerships with a total o
f about 200,000 TEUs in vessel capacity, and with revenues over US$4 b
illion. The Group’s global network and container transportation serv
ices cover the North America-Asia, Europe-Asia, Intra-Asia and Austral
ian trades. In addition, the Group will offer services to Latin Ameri
ca, as well as in the trans-Atlantic and Asia-Mediterranean routes. T
his network is supported by double stacktrains, other rails and trucks
, dedicated terminals, consolidation and logistics services. In addit
ion, the Company offers state-of-the-art information technology and ex
change, plus decision support capability deep into the global supply c
hain.
“Buliding on the strengths of NOL and APL, our customers will be able
to access the broadest array of routes with the highest frequency of
sailings, the fastest transit times, and the most extensive intermodal
services” said Mr Lua Cheng Eng, Deputy Chairman and CEO of NOL Grou
p. “NOL and APL are committed to providing customers with the highest
level of customer services, value and quality” Mr Lua added.
Mr Timothy J Rhein, President and CEO of APL, noted “The transportati
on world is going through significant change and consolidation. Futur
e success depends upon the ability to offer customers comprehensive, e
fficient, valually anywhere on the face of the earth. Through the int
egration of NOL’s and APL’s complementary shipping routes and experi
se, we will offer truely global logistics services to customers worldw
ide.” Mr Rhein will be invited to join the NOL Board of Directors.
For commercial reasons and to optimise brand equity, NOL will adopt a
single brand name for the container business of the merged organisatio
n. NOL’s container liner business will be combined with APL and will
operate under the single brand name of APL. The present APL corporat
e and brand identities will be used.
The NOL name will continue to be used for its non-container business i
ncluding chartering (tankers, bulk carriers, etc)and for all corporat
e activities in NOL, the parent company.
On the liner shipping alliances, in which NOL is a member of the Grand
Alliance whilst APL is a member of the Global Alliance. NOL has deci
ded to leave the Grand Alliance and to form a new Alliance together wi
th Mitsui OSK Lines of Japan and Hyundai Merchant Marine of South Kore
a. Mr Lua said:”The new Alliance will be more global and will includ
e the Atlantic trade. It is designed to be even more flexible and dec
isive to respond very quickly to the ever fast changing marketplace.
The new Alliance welcomes any like-minded lines who share a common ope
rating philosophy and vision with us.” Discussions with OOCL of Hong
Kong to join the new Alliance are still in progress. Mr Rhein confime
d that after the merger APL expects to join the new Alliance.
The integration program for NOL container business and APL will be car
ried out in a structured and seamless manner to minimise any business
and operational inconveniences and to deliver an efficient and effecti
ve merged organisation. The entire process is expected to be complete
d by the first quarter of 1988.
“We expect to realise cost savings of more than US$130 million annual
ly from the consolidation of certain operations, improved efficiencies
and elimination of duplications on systems, organisations and operati
ons” Mr Lua said.
NOL is a total global transportation company involved in diverse trans
port-related activities. With shipping as its core business. Togethe
r with its wholly-owned subsidiary, APL, NOL will provide shippers wor
ldwide with global container transportation and logistics through an i
ntegrated network combining high-quality intermodal-services with stat
e-to-the-art information technology.