Associated company forms joint venture for exclusive logistics park management and opens new distribution centres.
Indo-Trans Keppel Logistics Vietnam Co., Ltd (ITL Keppel), an associated company of Keppel Telecommunications & Transportation Ltd (Keppel T&T), has formed a joint venture company (JV Co) with TANIMEX Group to provide exclusive warehousing and handling services at Tan Binh Logistics Park in Ho Chi Minh City, Vietnam.
The JV Co, ITL Keppel Tanimex Logistics Company Limited, will be 80% owned by ITL Keppel and 20% owned by the TANIMEX Group. The joint venture is conditional upon the approval from relevant authorities. The JV Co's registered capital of US$ million will be contributed by the parties in cash, proportionate to their shareholdings. The JV Co will lease 15,000sm of warehousing space from the first phase development of Tan Binh Logistics Park; 20% of the space has been pre-committed to customers.
The joint venture agreement was signed on the occasion of ITL Keppel's grand opening of its two latest distribution centres in North and South Vietnam.
With the addition of these two centres and Tan Binh Logistics Park, ITL Keppel's managed warehousing capacity has grown more than three-fold to a total of 31,500sm, allowing it to effectively expand its footprint in North and South Vietnam.
Mr Pang Hee Hon, CEO of Keppel T&T, said, "Our Vietnamese partnerships have allowed Keppel T&T to expand its network to tap into the opportunities offered by the rapid growth of Vietnam. As the exclusive operator for the logistics park, we will leverage its proximity to the city centre to meet the growing needs of the nearby commercial and industrial companies.
"We will have another new distribution centre located right within Hanoi City ready in the 3rd quarter this year. Our North-South distribution network will strengthen greatly as a result of these new distribution centres, enabling us to serve the logistics needs of our customers in both urban and industrial regions effectively."
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