Agility earmarks $100 million to invest in Shipa

KUWAIT: Agility Public Warehousing Company (Agility) has earmarked $100 million to invest in Shipa, which is a digital platform that helps small businesses and entrepreneurs to manage their logistics business online and through mobile devices.

The investment is intended to help Agility meet the needs of underserved customer segments and develop digital first e-commerce platforms.

Agility group has in total 6 engines, the biggest is GIL in terms of revenue and the others are clubbed under Infrastructure. Infrastructure is group of companies that have their own management to run the business.

The main entities within Infra group are:

Agility Logistics Parks (ALP) is an industrial real estate company that builds warehouses. There are some synergies between ALP and GIL as GIL might be a customer of ALP, however, ALP builds primarily for the market. GIL doesn’t represent more than 10 percent of ALP’s revenue.

Tristar, the fuel Logistics company has been growing, and achieved 33 percent revenue growth in 2018. CAPEX for Tristar has also been increasing.

United Projects for Aviation Services Company (UPAC), a commercial real estate company, developing the $1.2 billion Reem Mall project in Abu Dhabi in partnership with National Real Estate Company (NREC). In Kuwait it manages concessions from the government. Revenue was slightly down in 2018 due to car park operations which is part of the concession, as the government recently moved passengers to new terminals and this impacted revenue slightly year over year.

National Aviation Services (NAS) grew its revenue at 15 percent CAGR for the past 10 years. It has concessions in various places some of them are tough places to operate in like Afghanistan. Good growth in India, Cote d’Ivoire, Liberia, Rwanda and Morocco; NAS is a portfolio of aviation concession and the company has been growing significantly, this year it grew at 17 percent compared to last year.

The last engine GCS, a technology platform and customs handling operation. GCS witnessed a revenue growth of 12 percent.

Back in 2016, Agility announced 5-year goal to hit $800 million of EBITDA. The company is committed to this number and management believes it is within reach and they are on the right track to achieve it, however, the time line might go beyond 2020. Again, the management is committed and dedicated and will try its best to achieve this goal within the stated timeline.[the_ad id=”31605″]

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