Keppel T&T hinges China strategy on new cold logistics park

Vital to capturing rising food safety demand.

Keppel Telecommunications & Transportation Ltd (Keppel T&T) CEO Mr Pang Hee Hon revealed how critical its new joint venture project, Keppel Wanjiang International Coldchain Logistics Park (Keppel Wanjiang Logistics Park), is to the success of the firm's cChina strategy.

"Keppel Wanjiang Logistics Park is a key element of Keppel T&T's strategy in China, which focuses on food and agricultural produce and cold chain logistics," said Pang in a release announcing the commencement of the new logistics park.

Mr Pang added, "As our second food logistics project in China, Keppel Wanjiang Logistics Park will provide best-in-class integrated third-party logistics (3PL) services that include warehousing, cold chain, and distribution. In addition, it will also offer ancillary support infrastructure, trading platform and the sale/rental of retail shop fronts."

The new logistics park is a joint venture between Keppel T&T, Jin'an District Government, Anhui Zhuxin Group and other partners. The joint venture company is 60% held by a Keppel T&T's wholly-owned subsidiary with the rest held by the Jin'an district government, and private investors including but not limited to Zhuxin's wholly-owned subsidiary, Anhui Wanjiang.

"We are happy to commence work for the project. When completed, it will position us to capture demand arising for better food safety and also the growing middle class in Central China," said Pang.

To create operational and commercial synergies, Keppel T&T will also seek to integrate operations of the Logistics Park with Wuhu Sanshan Port that is also located in Anhui Province, along the Yangtze River. The Wuhu Sanshan port has started operations earlier this year and achieved over 1 million tonnes in throughput.

Sited within the Lu'an Jin'an Area Northern Industrial Park, the Keppel Wanjiang Logistics Park is close to the new Hefei Xin Qiao International Airport. Approximately 10km from Lu'an city centre, the site is also well connected with the rest of China via expressways and railroads. Various farmlands are also located about 5km to the north of the Logistics Park.

The project is also set to propel food and agricultural companies in Central China.

Mr Bi Xiaobin, Mayor of Lu'an City, said, "The development of the Keppel Wanjiang International Cold Chain Logistics Park is an important step towards creating higher food safety awareness and standards, and will help to spur the growth of the food and agricultural companies not just in Lu'an, but also other parts of Central China. We are happy to work closely with Keppel T&T in this project, as it is an established provider of quality logistics services."

Mr Yang Jianjun, Chairman and major shareholder of Anhui Zhuxin Group and other joint venture partners, also added, "We are happy to be in partnership with Keppel T&T and the Jin'an District Government to develop this Cold Chain Logistics Park, which is critical to the growth of the food and agricultural industries here. Keppel's outstanding third-party logistics track record, coupled with the strong support from the Government, would position us well to cater to the untapped demand for these logistical services in the region."