Maersk continues its logistics growth with warehouses in India and Brazil

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The new warehouse in India is the fifth Maersk added this year (Maersk)

Posted on September 7, 2022 at 6:48 p.m. by

The Maritime Executive

A week after acquiring pan-Asian logistics company LF Logistics, Maersk opened new warehouses in India and Brazil this week. This is part of the company’s ongoing efforts to use shipping company profits to transform its business model into an integrated logistics business. With the expansion of warehousing and distribution facilities, Maersk reports that it is strengthening its position by offering a wider range of services as an integrated supplier to its customers.


In India, the new factory opened its doors in Bhiwandi, on the outskirts of Mumbai. It is strategically located on the Mumbai-Nashik highway, providing excellent connectivity to manufacturing hubs and Jawaharlal Nehru Port in Mumbai. The new facility is over 250,000 square feet and, including warehouses from the recently completed acquisition of LF Logistics, Maersk now has a total of over 2.1 million square feet of warehouse space in India.


“We are delighted to open the doors of our fifth warehouse in India this year, with JK Tire & Industries as our main customer and our second in Bhiwandi, Mumbai. With the new facility, we can support our customers with superior connectivity, efficient inventory management, cost optimization and speed to market,” said Darryl Judd, Product Manager, Maersk South Asia.


JK Tire is one of the leading tire manufacturers in India and the 22nd largest manufacturer in the world. It has 12 manufacturing plants around the world, including nine in India and three in Mexico, which collectively produce approximately 33 million tires annually.


In addition to Maersk expanding its capabilities in the Indian subcontinent, they are also continuing to expand into Brazil and South America. This week they also marked the opening of a new warehouse in Cajamar in the state of Sao Paulo, Brazil. With over 200 million square feet, it is expected to add additional warehousing capacity to major economic centers in the Southeast region. It is located near major markets for fast-moving consumer goods, electronics, fashion and lifestyle, among others. The facility is approximately 30 miles from major airports and 75 miles from the Port of Santos.


“This is an important step in Maersk’s journey to becoming the world’s container logistics integrator. Our new facility in Brazil is part of our investment in the east coast of South America for the construction of our warehouse and contract logistics business. We are growing extremely quickly with our customers on land logistics, and we will continue to grow this part of our business in the years to come,” commented Soren Skou, CEO of AP-Moller-Maersk regarding the launch of the new warehouse in Brazil.


In its latest financial reports, for the second quarter of 2022, Maersk indicated that it has maintained its strong momentum in bringing integrated logistics solutions to customers. For the quarter, logistics operations revenue rose 61% to $3.5 billion, making it the second largest part of the business behind shipping and contributing 16% of total revenue. Profits were up more than 50% from the logistics business due to higher volumes from new customers and increased spending from existing customers, Maersk reported.

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