Clarity still awaited on Maersk's SA restructuring plans

JOY ORLEK, ALAN PEAT MAERSK LINE is set for a major restructuring exercise in its bid to beef up the bottom line. According to a company release, its various business interests are to be split into independent units. Business units, including Maersk Logistics, trucking and warehousing, will be separated from the container unit’s shipping line and turned into standalone divisions, said CE Eivind Kolding. But it’s early days yet, according to David Williams, Maersk Line MD in SA, “and certain points have yet to be clarified.” It is possible that another announcement on the SA separation could be made in January. A lot of the group’s other businesses in South Africa, like warehousing and container road transport, are already running as separate units, he added. “The most noticeable change will be the splitting up of Maersk Line and Maersk Logistics – which have previously worked very much in tandem,” said Williams. “It will allow us as Maersk Line to focus more closely on our individual clients,” he added, “and react more quickly to the needs of our customer base.” Along with the rest of the industry, bunker costs and port congestion have posed major problems for the line over the past 12 months. According to a Reuters report quoting Kolding, the line will pare down management cutting the management team from nine people to seven. And while Kolding said that there were no immediate plans to sell off smaller business units, he did not rule out the possibility at a future date.