Keppel T&T opens new distribution centre in China

The new centre is located 20km away from Guangzhou and near major expressways, with integrated energy and water saving features.

Keppel Telecommunications & Transportation Ltd (Keppel T&T) through its joint venture, Keppel Logistics (Foshan) Limited (KLF), officially opened its new distribution centre in Foshan, Guangdong Province Monday.

Since 1995, KLF has been operating Lanshi port, which is along Pearl River in Foshan. With the opening of Nanhai Distribution Centre (NHDC), KLF will add another 35,000 sm of warehousing space and manage a total of over 100,000 sm of warehousing space in Guangdong Province.

The opening of NHDC marks Keppel T&T's third expansion milestone in China for 2011. On the opening, Mr Pang Hee Hon, CEO of Keppel T&T, said, "We hope to build on our experience in Foshan and replicate our success in offering integrated port logistics and other logistics services in other parts of China. In the long term, we believe that China's demand for seamless efficient logistics solutions will continue to grow."

Earlier in September, Keppel T&T signed a joint venture agreement with Sinotrans Ltd. to jointly develop and operate a river port along Yangtze River, serving Wuhu City, Anhui Province and the central region of China. In January 2011, it also signed the land use rights agreement for the development and operation of a green integrated logistics distribution centre in the Tianjin Eco-City, marking Keppel T&T's first and significant step into North China. Featuring modern facilities, the new distribution centre is located 20km away from Guangzhou (capital of Guangdong Province) and near major expressways, making it ideal for serving the manufacturing industries in the locality.

Integrating energy and water saving features, NHDC also features 12m-high Very Narrow Aisle racking and state-of-the-art warehouse management systems that help to track customers' goods and inventory. The distribution centre also features facilities for repacking and other value-added services.

The opening ceremony was graced by Mr Li Zifu, Vice Mayor of Foshan, Mr Ang Chay Chuan, Singapore's Consul-General (Guangzhou), Mr Lin Zheng, Secretary General of Foshan Municipal Government, Mr Teo Soon Hoe, Senior Executive Director and Group Finance Director of Keppel Corporation and Chairman of Keppel T&T and other senior management of KLF, according to a Keppel report.

Mr Pang pointed out, "Foshan has been experiencing strong economic growth due to an influx of foreign investment, as well as increased manufacturing and trade. Therefore, KLF has grown significantly as the anchor of Keppel T&T's presence in China.

"The opening of NHDC strengthens and complements KLF's third party logistics capabilities and allows KLF to take on more contracts and offer more integrated logistics solutions to its customers in Foshan. By the end of this year, we expect NHDC to achieve 80% occupancy."

KLF, the joint venture between Sinotrans Guangdong Co., Ltd. and Keppel T&T, has grown steadily in tandem with Foshan's economy. KLF's throughput has grown six-fold from 41,600 TEU in 1995 to 258,800 TEU in 2010.
In the recently released 2011 China City Competitiveness Blue Paper: China City Competitiveness Report by the Chinese Academy of Social Science, Foshan was ranked 12 for its economic competitiveness. In 2010, Foshan also achieved GDP growth of 14 percent to RMB 565.10 billion. Foshan's total exports and imports were worth RMB 51.66 billion in 2010, up 34.7 percent from 2009, marking the first time the city's foreign trade volume surpassed RMB 50 billion.