Expolanka to start incubation centre for logistics-centred innovation
View(s):There’s a lot going on for Expolanka Holdings PLC (Expo) in terms of fresh ideas.
The company is mulling starting an incubation centre for logistics-centred innovations.
“Innovations is one of our three core areas (the other two being logistics and leisure). We are trying to expand this sector and now we’re in the stage of planning,” Hanif Yusoof, Group CEO Expo told the Business Times. He said that Expo aims to facilitate an incubation centre that provides a whole new start-up ecosystem for logistics related fresh thinking, adding that Expo’s core business in logistics require much innovation and technologies.
“That’s how the world is moving now and while technology will play a key role, innovation is a must. We’re already looking at the possibilities of roping in start-ups that are related to logistics sector to our company.”
Mr. Hanif said that Expo won’t confine to start-ups in Sri Lanka only.
“We’re looking across the globe for such ventures,” he said adding that Expo is already talking to people with some interesting start-ups.
“Apart from this, we’ll be helping those with ideas for start – ups in the logistics and freight forwarding.”
Expolanka Holdings also aims to expand in logistics to Ethiopia, apart from setting its sights on expanding in leisure.
Mr. Yusoof added that Expo will go to Ethiopia in freight forwarding/logistics. “Ethiopia is the next apparel sourcing country and that’s where we’ll go next,” he said adding that in the past two years, a number of European companies-among them, H&M, Primark, and Tesco-began sourcing some of their garments from Ethiopia. The rest of the apparel industry took notice: since 2013, there has been rising interest in Ethiopia. Mr. Hanif has hired a veteran as the chief operating officer of the logistics sector. “We hired Peter M Larsen, a Danish national, with over 40 years of experience in the logistics industry as the COO for logistics. He has worked extensively in Europe, the Middle East, Asia and Africa, with several globally recognised logistics providers.”
During the last quarter, contribution from the freight segment to group revenue continued to be significant at 83 per cent with air export as the highest volume and revenue contributor to the logistics segment. Growth in volumes was driven by core markets India, Sri Lanka and Bangladesh assisted through the US trade lane. North America and Europe accounted for 57 per cent and 26 per cent of total volumes during the period. The logistics segment saw its profit increasing 23 per cent year-on-year to Rs. 390 million in Q1 FY 17.
Mr. Hanif said that their leisure segment is expanding fast and the company has taken over management of two properties – Margosa Villa in Jaffna and a villa in Colombo. “We want to be asset light in this sector and will only be managing small properties.”- Â (Duruthu)