News / MOL shows its interest in cold chain logistics with buy into CKL

Singapore’s largest cold chain food player, Commonwealth Kokubu Logistics (CKL), has secured investment from Japanese shipping group Mitsui OSK Lines (MOL), a sign of its growing interest in the business.

MOL said today it had taken a 15% stake in CKL, which operates one of the tallest cold chain food logistics facilities in the world, at more than 100m, with 500,000sq metres for chilled and frozen goods and set to be fully operational this month.

It is strategically near Jurong Fishery Port in the western part of Singapore, and has 130 loading bays for cargo collection and delivery.

MOL’s move comes three months after US private equity company Stonepeak launched Peregrine Cold Logistics, a platform which acquires and develops cold chain businesses and grows start-ups in the segment.

Cold chain logistics came into focus during Covid in 2020, when there was demand to transport vaccines and drugs in suitable temperatures. Since then, more shipments of fruits and frozen seafood, especially from South America to Asia, have fuelled demand for cold chain logistics too.

CKL is controlled by Singapore-based restaurateur and food products supplier Commonwealth Capital, with 51%, alongside Japanese food distributor Kokubu Group (34%) and MOL (15%).

CKL plans to expand in South-east Asia, a move supported by MOL, which now operates frozen and refrigerated warehouses in Osaka and Kawasaki in Japan.

The carrier said: “South-east Asia is where economic development and population growth are expected to drive increasing demand, such as cold chain business.

“MOL is advancing a transformation of its business portfolio to ensure profitability even during a downturn in the shipping market.”