Keppel T&T gunning for more food logistics opportunities in China

Here's how it can grow its market share in China.

According to CIMB, given that food safety has recently become an issue of concern in China, Keppel
T&T is leveraging its trusted track record in the third-party cold chain logistics arena and the Keppel brand name to tap the growing demand for quality food supply chain logistics in China.

Here's more from CIMB:

The Chinese government launched a five-year Food Safety Plan in June 2012 that targets to meet Wold Health Organization (WHO) food safety standards by 2015 and this presents an opportunity for overseas players, such as Keppel T&T, to come in and impart international best practices to the locals.

The Economist Intelligence Unit (EIU) has reported that around 15% of perishable food (seafood, meat, fruits and vegetables) is handled through cold chain logistics in China, compared to over 90% in developed nations.

This has led to significant wastage of food during the transportation and storage process.

Meanwhile, the growing middle class in China has led to an increase in demand for higher quality food products, most of which require cold supply chain management (cold chain food).

Cold Chain ASIA estimates that cold chain food currently accounts for more than 20% of all food on supermarket shelves in China.

With this figure expected to rise, coupled with the relatively low penetration of cold chain logistics in China, Keppel T&T can leverage its two food logistics parks to build further market share in China.

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