Investment firm set up by Thai JWD & Indonesia’s Samudera

Logistics Solutions Provider JWD and Indonesia’s major shipping line company Samudera have jointly established a JV firm to provide integrated logistics solutions in Indonesia. The firm’s first mission was to buy a 67% stake in a cold storage company based in Jakarta, which will enable JWD to recognise revenue from the profits to be shared proportionately to its investment through the firm. The firm will also build more cold storage in other cities.
Mr Charvanin Bunditkitsada, Chairman of the Executive Committee and Chief Executive Officer of JWD InfoLogistic Public Company Limited, revealed that JWD sees the opportunity to step up its investment efforts in the Asean region in order to secure regional logistics leadership, and that most recently JWD Asia Holding Private Limited, a Singapore-incorporated company which is 99.98% owned by JWD, has reached an agreement with PT Samudera Sarana Logistik, an Indonesian member company of PT Samudera Indonesia Tbk, a major shipping line company listed on the Indonesia Stock Exchange, to set up PT Samudera JWD Logistics as a joint-venture firm with an initial registered capital of USD780,000 (approx THB26m) and with its shares 49% held by the former and 51% by the latter, to serve as the holding company for pursuing investments and acquiring stakes in a wide range of logistics businesses in Indonesia, especially cold storage, automotive storage and management and hazardous cargo warehousing and management.
“In the cold storage and transport segments, we have a strong base in Thailand and we have made investments in Cambodia, Laos, Myanmar and Indonesia. Most recently, we have reached a deal to invest jointly with Samudera, which marks a major milestone for the campaign to grow our presence in Indonesia. The first mission was to invest in cold storage businesses, given the currently high demand for cold storage space. We have an ambition to create Asean’s ‘Food & Cold Supply Chain’ that offers a comprehensive range of services, including cold storage, carriage, cross-border transport, freight forwarding and incidental services (e.g. procurement of materials). In the meantime, we keep looking for new opportunities to expand regionally. To realise our goal to maintain logistics bases in nine Asean countries (excluding Brunei), we aim to set our foot on Vietnam, Philippines, Singapore and Malaysia by 2020. We will focus our efforts on building a network and connecting logistic solutions regionwide, using ‘Total Solutions’ business model,” he said.
Mr Tanate Piriyothinkul, Executive Committee and SVP Business Development of JWD, added that, after completion of the incorporation process, P Samudera JWD Logistics (the JV firm) has invested about USD7.8m (approx THB260m) in a 67% equity stake in Adib Cold Logistics (ACL), a Jakarta-based member of Adib Group that operates cold storage and transport facilities with a cargo warehousing capacity of about 7,000 pallets and a cold storage space occupancy ratio of approximately 60%, which is forecasted to jump to 80-90% in March 2018 due to orders from new users of its storage space.