CWT opens two logistics hubs worth more than S$80m

Mainboard-listed logistics company, CWT, has opened two new logistics hubs in Singapore, expanding its warehouse space by one million sq ft.

The new facilities cost CWT more than S$80 million, but they are expected to help drive revenue up by some 10 percent. Most of the new space will be used to store chemicals, which will help boost CWT’s position in the sector.

Loi Pok Yen, Group CEO of CWT, said: “We are dominant in both chemicals and commodities logistics, and the main reason for this is because there are very few competitors. For chemical logistics companies, there are probably just five companies that are extremely good at doing this. For commodities, probably less than 15 companies worldwide.”

Speaking at the opening ceremony of the new facilities on Wednesday, Minister for Trade and Industry Lim Hng Kiang noted that there is pressure on third party logistics service providers (3PLs) like CWT to keep pace with industry demands.

Mr Lim said: “Manufacturers are outsourcing non-core activities such as warehousing and transportation to focus on their core competencies. This trend is set to continue. 3PLs need to quickly acquire new expertise to fully capture these opportunities. This is especially so for industries such as the chemicals and pharmaceutical sectors which require specialised handling and storage of hazardous, toxic and infectious goods.”

Other than the two new hubs, CWT is also planning for a new commodity hub in Penjuru.

“We’re going to continue investing in Singapore in a big way. Besides these two buildings that were recently completed, we have a new building that will be completed in April – that consists of two phases. So when we finish the entire building, which is about 2.34 million sq ft, that will be the largest building in Southeast Asia,” said Mr Loi.

CWT is seeking to expand in the region, particularly in Vietnam and China. It has earmarked some S$120 million for infrastructural developments in China over the next three to five years.

Last year, the logistics and supply chain management industry employed 180,000 people and accounted for 9.4 percent of Singapore’s GDP.

CWT has about 4,000 staff worldwide, of which 1,600 are in Singapore.

Source : Channel NewsAsia – 12 Mar 2008

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