Logistics company JWD InfoLogistics says it has adopted a business plan to increase revenues from its recent investments in ASEAN markets, such as in warehouses in Laos, Myanmar and Cambodia.
The plan for 2017 aims for a minimum seven percent revenue growth. Recent investments in ASEAN markets include general and cold storage warehouses in Laos, Myanmar and Cambodia.
They include also a cross-border cargo transport business that operates in the Cambodia, Laos, Myanmar and Vietnam (CLMV) markets and Malaysia in partnership with Srithai Group.
JWD chief executive officer Charvanin Bunditkitsada said: “This year we will reap revenue from the investment projects that have been introduced over the past two years that have begun commercial operations.”
“For example, the warehousing business in Laos, Myanmar and Cambodia will generate full-year revenue. Domestic businesses are forecast to experience growth,” added Bunditkitsada.
He said the cold storage warehousing segment is benefiting from the rising demand from seafood businesses which will foster growth in 2017.
“JWD is confident it will achieve more effective control of operating costs and expenses as major expense items such as business expenses, business development expenses, investment advisors’ fees have been recognised for Q2 and Q3 of 2016, and provisions made for contingent liabilities.”
These will lead to better cost control and performances in 2017, he said.
“Seeking to become ASEAN’s leader in logistics business, we are committed to both strengthening our domestic businesses and grasping overseas investment opportunities to achieve synergy and integration, using our capacity to provide specialised logistics services to enable us to grow further.”
Last year JWD InfoLogistics said it planned to expand its business to the Cambodian market with the launch of a real estate investment trust (REIT) worth about $56 million this year to finance its expansion in ASEAN.
JWD and its financial adviser Kasikorn Securities were studying the feasibility of putting the company’s 375,000 square meter warehouse into the REIT.
JWD has 775,000 square meters of storage space in Thailand, with an average utilisation rate of 85 to 90 percent, and is in the process of adding an additional 7,000 square meters in Cambodia, Laos and Myanmar.
The company set aside about $140 million to expand in ASEAN over the next five years, with about 10 percent of that earmarked for joint ventures. The company formed a joint venture with the RMA Group to invest in frozen-food warehouses in Cambodia, Laos and Myanmar.