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DFDS hopes for McBurney Transport completion in first quarter

[ February 9, 2023   //   ]

FDS hopes to gain approval for its purchase of Northern Ireland-based McBurney Transport Group in the first quarter of the year, said chief executive Torben Carlsen.

Speaking at a press conference to announce the Danish ferry and logistics giant’s annual results on 9 February, he said that approval was needed from the Irish competition authorities; although McBurney Transport is based in Northern Ireland, it also has substantial interests in the Republic.

Carlsen said that the move would transform DFDS into “a significant logistics operator” in Ireland

Ballymena-headquartered McBurney moves around 100,000 full and part-load trailers between Ireland and the UK by road and ferry, most of them temperature-controlled units. It operates from eight different locations, three in Northern Ireland, one in Ireland, three in England and one in Scotland including a 25,000-pallet cold store in Liverpool. It also owns a 10,000 m2 ambient warehouse in Northern Ireland as Bondelivery focused on fulfilment for the retail sector and last mile delivery on the island of Ireland.

McBurney is not DFDS’s only major acquisition on the island of Ireland. In July 2022, it signed a deal to acquire 100% of the capital of Dublin-based Lucey Transport

Announcing its overall annual financial results, DFDS said that revenue in 2022 wasup 47% to DKK 27bn, with EBITDA earnings up 45% to DKK 5.0bn.

Torben Carlsen said: “Despite headwind in certain areas, our business performed very well in 2022. As we increase the return of cash to shareholders, we continue to see great potential to strengthen and grow our network further in the coming years.”

Among the headwinds experienced, overall freight ferry volumes, including the Channel, North Sea and Mediterranean were down 11%; excluding the Channel, volumes were down 3%.

There is currently over-capacity on the Channel, although DFDS’s signing of a space sharing agreement with P&O Ferries had allowed it to eliminate 4-5e daily sailings.

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