Keppel T&T to develop Sino-Singapore logistics park

The 44,000-sqm Sino-Singapore Jilin Food Zone International Logistics Park will be operational by 2014.

Keppel Telecommunications & Transportation will have a 70% share in the joint venture through a wholly-owned subsidiary with the rest will belong to Jilin Sino-Singapore Food Zone Development Co., Ltd.

The logistics park, whose initial phase outlay is estimated at RMB 598 million, will serve as a "consolidated trading platform for the trading, storage and distribution of food products."

"This joint venture agreement follows the signing of a non-binding Memorandum of Understanding with Jilin City Government's project office last year and the conclusion of feasibility studies," said Keppel Corporation in a release.

"The Logistics Park will include facilities such as a wholesale food marketplace, temperature-controlled warehouses, offices and a transportation hub to meet the trading and logistical needs of all the stakeholders in the Food Zone," it said.

"The Sino-Singapore Jilin Food Zone Logistics Park is a key component of our strategy in strengthening Keppel T&T's foothold and presence in the northern regions of China. By leveraging Keppel T&T's expertise in third party logistics and cold chain services, the JV Co will not only be the operator of the Logistics Park, but also provide integrated logistics services. Such an integration of the food marketplace with the provision of logistics services will offer the users a seamless flow of transactions and services," said Keppel T&T CEO Mr Pang Hee Hon.

"Spanning approximately 40 hectares, the first phase of the Logistics Park will be designed to have about 44,000 square metres of warehouse space fitted with cold room facilities, a modern cross-docking hub and a centralised transportation hub. It will also offer space for offices and more than 1,000 units of wholesale shops. Operations are expected to commence in 2014," said Keppel Corporation.

"Located at the northern boundary of the Sino-Singapore Jilin Food Zone, the Sino-Singapore Jilin Food Zone International Logistics Park will occupy 114 hectares when fully developed and will be accessible via major expressways. Future plans to link a railway line to the Logistics Park will further enhance its accessibility for distribution," it said.

"The Sino-Singapore Jilin Food Zone has the strong support of the Jilin provincial government. The project is regarded as one of the key initiatives for the "Changchun-Jilin Integration"3 development strategy, which aims to industrialise and urbanise both cities to spur economic growth. The Food Zone, which has a core zone of 57 square kilometres, will be home to the production of agricultural foodstuff, grown and processed under stringent health and quality standards," it added.

"The abovementioned joint venture is not expected to have material impact on the net tangible assets or earnings per share of Keppel T&T for the current financial year," it said further.