MEDLOG buys Seaway’s Intermodal Division

WHAT seems to have been one of the industry’s worst-kept acquisition secrets has been confirmed this morning by both buyer and seller.

Fulfilling rumours that first emerged in mid-October, MSC’s MEDLOG Oceania has signed an agreement to acquire Seaway’s Intermodal business, with the acquisition expected to be completed this quarter.

Seaway’s Intermodal business comprises road, rail, and warehousing services, connecting regional exporters and importers across key container catchment areas in Sunraysia, south-western Victoria and Melbourne, as well as Toowoomba and Emerald in Queensland.

MEDLOG Oceania says the strategic acquisition not only strengthens the company’s Australasian footprint but also supports MEDLOG’s global sustainability strategy, with the rail component playing a critical role in reducing carbon emissions.

“We are delighted with the opportunity to support existing Seaway customers and enhance the MEDLOG business,” said Giuseppe Prudente, chair of MEDLOG SA.

“This acquisition reinforces our ability to deliver value-added solutions and drive sustainable growth across Oceania.”

Seaway Group chief executive Craig McElvaney said “the Seaway Board believes its Intermodal business has reached a point where its next phase of growth will be best supported by an organisation with the scale, resources, and infrastructure to invest in, and expand the business further”.

“MEDLOG Oceania is well positioned to provide this platform, and to continue building on the strong foundations already in place,” Mr McElvaney said.

Both MEDLOG Oceania and Seaway say they are committed to ensuring a smooth transition for customers and partners. The integration process is to be carried out over several months following completion, with a focus on continuity of service and operational excellence, the companies said.

Seaway’s other three divisions, Sea Freight Forwarding, Air Freight, and Shipping Agencies do not form part of the acquisition. These services are to continue to operate unchanged, ensuring customers receive the same trusted expertise and high-quality service they rely on, Mr McElvaney said.

Seaway’s Intermodal Division was itself assembled via several acquisitions, including Merbein’s Wakefield Transport and Warrnambool’s WestVic Container Services, as well as the regional hubs including warehouse facilities at Altona in Melbourne’s west.

The Emerald site is up and running while Toowoomba is under development, in association with Inland Rail opportunities.

The company’s website lists cold chain expertise, grain packing facilities, 3PL and 4PL supply chain management, fumigation and pre-cooling facilities, container packing, rail and road wharf despatch, cargo insurance and general warehousing.

MEDLOG has been expanding rapidly across Australia over the past two years and introducing full-suite services across its sites.

Among other moves it took over the empty container park adjacent to the VICT terminal at Melbourne’s Webb Dock in late 2024 and in late September last year launched its own intermodal facility and empty container park on a former Qube site in Sydney’s Minto.

Comment:

Seaway’s Intermodal Division is a neat fit with MEDLOG’s local and global ambitions, and the sale will allow Seaway to allocate capital to possible expansion in other areas, and to reduce debt after some 20 acquisitions of its own over the last 25 years.

Around 150-160 employees will transfer to MEDLOG, including the division’s EGM, Greg Paradine. There is no change to the ownership of the Seaway Group.

As suggested above, DCN first became aware of a possible transaction in October last year when, it is believed, Seaway responded to several possible suitors before eventually settling on MEDLOG as a buyer and agreement reached before year’s end.

The sale is another step in the consolidation of supply chain service providers in Australia and NZ, with Qube, DP World, Linx and other, international, players known to be “on the prowl”.