On the wires: Kerry Logistics rumoured in deal as logistics M&A pipeline grows healthier
“Kerry Logistics has entered a partnership with the Spanish national postal service to benefit from ...
Kerry Logistics’ KLN Singapore subsidiary is to develop a dry port in Laos’s Vientiane Logistics Park with Sitthi Logistics.
The move is part of Kerry’s push into the Asean region and its intention to develop an integrated Greater Mekon Region covering Cambodia, Laos, Myanmar and Thailand.
Kerry chairman George Yeo said: “We are proud to play a role in what will become an important economic corridor between China and South-east Asia.
“We are fortunate to have, in Sitthi Logistics, a strong local partner with which we will work hard to make the dry port project a success and an asset to the Laotian economy.”
Under the agreement, Kerry will provide management expertise with Sitthi providing local support.
The dry port will be developed in phases and cover an area of around 35 hectares. Vientiane has been selected as it provides rail connectivity between China and Thailand.
Intra-Asian demand in e-commerce played a pivotal role in Kerry’s 2018 “bumper” performance, in which it reported a 24% surge in revenues and an 11% rise in profits.
Managing director William Ma said: “Economic growth in emerging Asia, specifically in the South-east Asian countries, continued its strong momentum. With an unparalleled network in Asia, Kerry is well-positioned to capitalise on the robust growth in the region.”
And the company noted the strong growth in the logistics sector had been recognised by regional governments, with Laos’s leaders introducing new economic incentives.
Kerry pointed to its recent completion of the first phase for inland ports in both Mandalay and Yangon and said: “With stronger growth anticipated to persist in Asia, particularly in South-east Asia and India, Kerry will continue to leverage its established network in Asia. This will allow us to take advantage of the booming intra-Asia trade and maintain its business growth in Asia.”