Give us a scale of Dart Global, its size, reach and market edge
DGL, or Dart Global Logistics, has a rich history dating back to the 1970s in Hong Kong when we were part of a larger group called Dart Express Group. In 2008, we rebranded as Dart Global Logistics, establishing ourselves as an independent entity. Today, we have a strong presence in 14 countries, operating through corporate and branded offices in diverse markets across the Indian subcontinent, Southeast Asia, the Middle East, US, and China. We will soon expand our footprint in the Oceania region, including Madagascar and Mauritius.
Our company caters to a wide range of industries, managing customers from retail, pharmaceuticals, automotive, perishables, hi-tech, and other sectors in the different countries where we operate. Our service offerings encompass international transportation, warehousing & contract logistics, brokerage, and trucking, providing comprehensive solutions to our clients’ diverse needs.
This year, we celebrate a significant milestone, reaching our 40th anniversary, a testament to the dedication and leadership of our team. We take immense pride in our Sri Lankan roots, with key leadership team members being Sri Lankan. As we continue to grow, our vision is to carry the Dart brand globally, building on the foundation of our long-standing presence in the logistics industry.
During the pandemic, the logistics industry experienced volatile conditions in terms of capacity, pricing, and supply chain challenges. What is the present outlook?
With the onset of Covid-19, everything changed; from shutdowns and lockdowns to disruptions in supply chains and bottlenecks, the logistics industry experienced significant volatility in available capacity and pricing during the pandemic. Congestion at ports and airports due to a lack of manpower and staff availability coupled with increased volumes and equipment shortages as well as the urgent global need to transport medical goods and PPE impacted the industry. During the peak of this period, carriers allocated a substantial portion of their available capacity to meet the global urgency of shipping life-saving equipment and vaccines.
Therefore, as a result, lead times on shipping containers and air freight transit times got extended, and customers had to pay a premium for available capacity whilst facing major delays and challenges in moving cargo and meeting customers’ needs.
To cope with the supply chain challenges and bottlenecks, customers began shipping double inventory to cushion the impact. However, now, 12 months later, the dynamics have changed. Shipping volumes have decreased globally, with excess inventory and stock levels for importers, especially in markets like the US and Europe, where inflation and cost of living challenges have worsened.
The market is in a lull, with shipping and air freight rates coming down and falling back to pre-Covid levels once again. Port congestion and delays have eased, making moving cargo from origin to destination easier compared to the delays customers used to experience. However, the market is expected to remain relatively subdued until at least 2024.
Despite the current situation, those in the logistics industry remain optimistic, acknowledging that the industry operates in cycles with highs and lows, with hope for a pickup in activity by 2024.
How will expanding container terminals in Colombo and Hambantota impact Sri Lanka’s logistics industry?
Regarding ocean freight, our current terminals—JCT, SAGT, CICT, and ECT—play a significant role. Recently, there has been notable attention in the media regarding the Adani Group’s investment in Sri Lanka, specifically their efforts to expand the West Container Terminal. From my perspective, this development is highly favourable. Given Sri Lanka’s strategic geographic location in the Indian subcontinent, it is imperative that we increase our capacity and capability.
Foreign investments bring valuable technology, innovation, and skills that we, as Sri Lankans, can learn from. It’s important to acknowledge that foreign entities own some of the world’s major ports and airports, which has positively impacted the countries in terms of revenue and foreign income. While there are both positive and negative aspects to consider, competition from such investments will ultimately benefit the country.
In light of Sri Lanka’s critical position in the Indian subcontinent, expansion is essential—numerous cargoes from South India, including Tuticorin and Chennai, transit via Colombo. Similarly, cargo from Bangladesh’s Chittagong passes through Colombo on feeder vessels or via ports like Port Klang or Singapore. Colombo serves as a crucial mother vessel port with its sizable draft and location, necessitating an increase in vessels and carriers coming to the island.
Expanding our container terminals and enhancing our capabilities will attract more carriers, which is a positive step. It ensures that we retain our importance in the region, particularly when considering developments in nearby locations like the Nicobar and Andaman Islands, where India’s plans for a mother vessel port have been discussed.
Looking ahead, the potential of Hambantota Port should not be overlooked. The ongoing expansion of its slots and yard space to accommodate more roll-on, roll-off vessels and car carriers is commendable. The Hambantota Port Authority’s proactive marketing efforts, especially with Japanese carriers, to encourage transshipment via Colombo is a promising incentive.
As a nation, we must leverage our strategic geographic location and proactively adapt to the evolving global dynamics in the region. Embracing technology, upskilling, and training ourselves will empower us to meet the demands of international trade and effectively compete with our regional neighbours.
How is technology transforming the logistics industry, and what are some of the key advancements and innovations that have revolutionized the way businesses operate in this sector?
Technology is undoubtedly shaping the future of the logistics industry, transforming what was historically a manual and people-intensive sector. Innovations like automation, new platforms, visibility tools, AI, and ERP systems have revolutionized businesses’ operations. Major players like Amazon utilize robotics and drones for fulfilment and deliveries, while we at Dart Global, for example, implemented Warehouse management platforms to manage inventory and provide real-time visibility to customers.
Technology-driven transformation enables costs to be kept down, streamlining processes and reducing the need for manual labour. It has also changed how companies engage with customers, shifting from traditional selling to offering systems, data, and information. For instance, freight forwarding discussions now revolve around providing visibility tools that offer customers end-to-end supply chain visibility.
Further integration is a crucial aspect of the industry’s technological advancements, with connectivity increasing between various stakeholders, including government bodies, customs, importers, forwarders, and vendors. Such timely collaboration enables integration and allows companies to make faster, well-informed decisions.
Technologies such as blockchain and artificial intelligence present promising opportunities for the logistics industry. Blockchain technology enables companies to gain better visibility into their supply chains and offer quality data to customers. Artificial intelligence, on the other hand, has the potential to predict market conditions, consumer demand, and industry volatilities, allowing companies to make more accurate forecasts and optimize their operations.
The industry is expected to witness even greater advancements in the next five to ten years. Companies that fail to embrace technology and innovation risk falling behind and struggling to compete with multinational logistics providers and technology-driven services.
Embracing these advancements is crucial for companies to remain relevant, agile, and responsive in an ever-evolving global market.
On strategies to maintain and enhance competitiveness in the logistics industry and plans to expand its network and service offerings
One of the key aspects would be increasing scale and expanding our network and brand. We are exploring various avenues to achieve this, such as organic growth, strategic partnerships, joint ventures, and potential acquisitions. We aim to enhance our reach and capabilities to serve our customers better.
Looking towards Africa, we see it as the next frontier for growth. In particular, we are eyeing key markets like Kenya, Madagascar, and Mauritius. Over the next 24 months, we plan to enter these markets, offering our services and leveraging the opportunities presented by their growing exports and importance in the global manufacturing supply chain.
Furthermore, we aim to make significant advancements in logistics and contract logistics, especially in warehousing. South India, particularly, is witnessing substantial growth with significant investments in high-tech industries. We intend to actively participate in this growth and expand our warehousing offering and capabilities to add value to our customers’ requirements.
Expanding into Southeast Asia is also on our radar, focusing on markets like Vietnam, Indonesia, and Cambodia. These countries are experiencing increased production and investments from China and other Far East nations. We believe these markets will play a crucial role in the industry’s future, and we intend to invest in warehousing and expand our presence in these countries to compete effectively.
Another objective is to provide the best solutions for global and regional supply chains. As a part of this mission, we plan to open a free-zone facility in the BOI Export Processing Zone in Katunayake, Sri Lanka. This would enable Multi-Country Consolidation (MCC) and groupage services with a full range of value additions for various industries. Our international customers will be able to import raw materials and semi-finished items through the green channel without the involvement of customs.
We continually invest in automation and innovative solutions to streamline operations and provide enhanced client services. By fostering a tech-driven culture within our organization, we aim to differentiate ourselves from other freight forwarders in the industry.
Dart has been successful in logistics for four decades now. What do you attribute to that success?
The key contributors to Dart’s success over the past four decades are the people, the company culture, and strong leadership. People have been a crucial driver for Dart’s growth and success. In a service-oriented industry, the human element is significant in delivering a positive customer experience and driving the company’s vision and mission. Dart’s diverse team, operating in multiple countries, brings various backgrounds and talents that have helped the company navigate challenging times and excel in its operations.
The company culture at Dart is another vital factor which has contributed to its success. The management team fosters an open-door culture, promoting inclusivity and diversity within the organization. Regardless of race, ethnicity, background, or sexual orientation, employees are encouraged to bring their commitment and hard work to the company and treat it as their home. This inclusive mindset has helped retain dedicated employees, some of whom have been with the company for decades, providing stability and valuable expertise.
Effective leadership has been a cornerstone of Dart’s success. The key executive leadership team has demonstrated strategic thinking, taken calculated risks, and made sound decisions that have propelled the company forward. Their commitment and dedication to the company’s growth and profitability have been instrumental in steering Dart through the dynamic logistics industry and ensuring its consistency and profitability over the years.
Lastly, Dart’s adoption of technology and innovation has played a crucial role in maintaining its competitiveness. Embracing new technologies, such as advanced platforms, automation, and data-driven solutions, has streamlined processes, enhanced efficiency, and enabled the company to stay ahead in a fast-paced industry. By continuously investing in technology and staying abreast of industry trends, Dart has positioned itself as a forward-thinking logistics provider, ready to meet the evolving needs of its customers.
How does Dart Global plan to maintain its market edge in the face of an ever-evolving logistics industry?
Our strategy to maintain a market edge in the future revolves around proactive adaptation to change. We understand the significance of staying ahead of the curve in the rapidly evolving logistics industry. We have focused on integrating various visibility tools, ERP platforms, and software implementations to streamline our operations and enhance efficiency. This commitment to technology adoption enables us to meet the dynamic demands of our customers and remain competitive in the market.
Data-driven decision-making is a key pillar of our business strategy. We have invested in advanced analytics and data tools that empower our leadership teams to make well-informed decisions based on real-time information. By harnessing data insights, we can anticipate market trends, swiftly respond to changes, and cater to our customers’ evolving needs effectively. This approach has transformed our decision-making process and fortified our position in the industry.
Additionally, we proactively monitor market trends, seeking opportunities to enter new markets and expand our global network whilst taking advantage of our experience operating in diverse markets and different business environments to drive our growth strategy. As we look ahead to the next 40 years and beyond, we are committed to upholding our reputation as a forward-thinking and customer-centric logistics company.