The Investment Corporation of Dubai (ICD), owned by the Dubai government, has restructured its subsidiary Inchcape Shipping Services Holdings Limited (Inchcape) as two separate companies.
The announcement follows the imposition of a US$20 million penalty by the US Department of Justice following allegations Inchcape overcharged the US Navy for marine agency services between 2005 and 2014. At the end of May Inchcape announced it had reached a settlement with three whistle-blowers and the US government “without any finding of fault related to the disagreements that underlie the litigation” that was filed eight years ago.
In 2006 the Dubai government-owned investment entity Istithmar PJSC purchased the 171 year-old Inchcape from UK private equity company Electra Investment Trust. Commenting on the new restructuring, ICD says ISS Global Forwarding (ISS) will focus on global freight forwarding, contract logistics and oil and gas projects, while Inchcape will continue in its role as a leading marine services company. ISS is launching with existing operations in 18 countries throughout the Middle East, Africa, Europe, India and Turkey and has plans to extend the network to the Asia/Pacific region, Mainland China and Singapore.
Restructuring in its final stage
Following the departure of CEO Simon Morse from Inchcape in June this year, the new head of ISS is former DHL CEO for Europe, Middle East & Africa Enver Moretti. “We are establishing ourselves as a regional powerhouse and our aspiration is to be recognised within the supply chain logistics industry as a customer-centric organisation,” Moretti declared.
Mohammed Ibrahim Al Shaibani, CEO and executive director of ICD added: “We are confident in the future global growth opportunities presented by the supply chain logistics industry. We see particular value at this time in the long-term growth opportunities afforded within the emerging markets region where ISS Global Forwarding enjoys a strong presence.”
The ICD was established in 2006 as a sovereign wealth fund for Dubai. Transport-related investments also include Emirates Airlines and dnata.