Keppel T&T expands warehousing capacity in Singapore

S$17.85mn purchase of Transware Distribution Services will enable Keppel to optimise the land utilization and existing facilities.

Keppel Logistics Pte Ltd (Keppel Logistics), a wholly-owned subsidiary of Keppel Telecommunications & Transportation Ltd (Keppel T&T), has completed the acquisition of the other 50%-stake in Transware Distribution Services Pte Ltd (TDS) from MISC Integrated Logistics Sdn Bhd (MILS) for S$17.85 million.

Adjacent to Keppel Logistics' operational headquarters at Gul Circle, TDS was a 50-50 joint venture between Keppel Logistics and MILS. Sitting on 7 ha of land, TDS will add about 0.4 million sf of operational warehousing space to Keppel Logistics' current warehousing capacity of 1.1 million sf.

Mr Gui Eng Hwee, CEO of Keppel Logistics, said "Keppel Logistics is continually seeking to serve our customers better. The addition of TDS, which is just next to our main facility in Gul Circle, will allow us to further synergise our operations and reap efficiencies. It will, in addition, allow us to explore ways in which we can optimise the land utilization and existing facilities."

Established in 1990, TDS provides air, ocean, ground transportation and customs brokerage services with dedicated warehousing and distribution centres, according to a Keppel T&T report.

The purchase consideration was paid in cash and was arrived at on a willing buyer willing seller basis, taking into account the net tangible assets of TDS. The net tangible assets of TDS as at 31 July 2011 is S$20.6 million. With this acquisition, TDS shall be a wholly-owned subsidiary of Keppel T&T.