Thai-Indo JV Inland Logistics to take majority stake in Adib Cold Logistics for US$7.8 million - Reuters

 

Thai-Indo JV Inland Logistics to take majority stake in Adib Cold Logistics for US$7.8 million

Thai-Indo JV Inland Logistics to take majority stake in Adib Cold Logistics for US$7.8 million

Fri Dec 15, 2017 - 07:27am UTC

Inland Logistics

15/12/2017 – Inland Logistics, a joint venture formed by PT Samudera and JWD InfoLogistics is planning to acquire a 67 percent majority stake in Adib Cold Logistics, a cold storage and transport facilities provider for US$7.8 million.

The joint venture will allow JWD InfoLogistics to expand the company’s food and cold supply chain in ASEAN and supports Samudera to grow its presence in the inland logistics business which shows great potential.

Besides, the investment deal will allow JWD to recognize revenue from the profit-sharing proportionate to share its investment through the JV firm. For 2017, Adib Cold Logistics claims to have a revenue of about US$4 million.

“This is an opportunity to step up JWD investment efforts in the ASEAN region to secure regional logistics leadership,” explained Charvanin Bunditkitsada, the Chief Executive Officer (CEO) and Executive Committee Chairman of JWD.

Inland Logistics is set up with an initial registered capital of US$780,000 with 49 percent held by JWD and 51 percent by Samudera, a major shipping group listed on the Indonesian Stock Exchange.

The joint venture is to serve as a holding company for pursuing investments and acquiring stakes in a wide range of logistics businesses across Indonesia, especially those involved in cold storage, automotive storage and management, as well as hazardous cargo warehousing and management.

“We have a strong base in Thailand and investments in Cambodia, Laos, Myanmar, and Indonesia, but this deal with Samudera marks a major milestone in the campaign to grow our presence in Indonesia,” Bunditkitsada added.

Adib Cold Logistics has a cargo warehousing capacity of about 7.000 pallets and a cold story space occupancy ratio of approximately 60 percent, which is forecast to jump to 80 to 90 percent in March 2018 due to orders from new users of its storage space.

Besides that, JWD Logistics is also eying on the opportunity to expand the fleet of transport vehicles in Jakarta and to build new cold storage plants throughout Indonesia, as the existing providers of cold storage and logistic services there cannot meet the high levels of demand.

PT Samudera Sarana Logistik is a provider of cargo transport and logistics services. Listed on the Indonesia Stock Exchange, Samudera conducts activities in five core segments including Samudera Terminal, Samudera Shipping, Samudera Shipyard, Samudera Logistics, and Samudera Property. The company currently employs more than 4,000 workers and maintains 17 branch offices throughout Asia.

Meanwhile, JWD InfoLogistics is a leading total logistics solution provider. The company has operations in Myanmar, Laos, and Cambodia, joining other logistics firms to expanding into the region. According to Charvanin, the company expects a double-digit revenue growth in 2018 after acquiring domestic and foreign companies.

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