Joint venture eyes cold chain market

Joint venture eyes cold chain market

A cold chain storage facility belonging to Thailand Post.
A cold chain storage facility belonging to Thailand Post.

SET-listed logistics company JWD InfoLogistics has partnered with Thailand Post and Flash Express to launch cold chain express delivery under the Fuze Post brand to capitalise on the 34-billion-baht market.

The country's cold chain delivery is a promising industry with annual growth of 8-10%, said Thailand Post chief executive Dhanant Subhadrabandhu.

Cold chain delivery is the transportation of temperature-controlled goods, such as certain foods, beverages, and bio-pharmaceutical products, and so requires specialist storage, packaging and couriers.

The new service kicks off on Sept 1 with direct pick-up, while drop-off spots and transportation of products for inter-regional routes is scheduled to begin early next year.

The three companies plan to establish a joint venture early next year to deal with the business, with each holding an equal stake.

Mr Dhanant said Fuze Post's temperature-controlled express delivery service is expected to thrive and become the leader in this segment.

The strength of Fuze Post lies in the full delivery network from direct pickup, drop off and last mile delivery. The service will be provided via www.fuzepost.co.th.

"It is a perfect combination of partnership that brings in the potential of each operator to develop the best possible temperature-controlled delivery services that meet the needs of customers," said Mr Dhanant.

He said Thailand Post specialises in door-to-door delivery with the help of its nationwide network and years of experience, especially in terms of a combined workforce of more than 20,000 postmen who know every area in the country and are familiar with local communities.

He said the first phase will focus on customers in Bangkok and six major provinces, namely Nong Khai, Chiang Mai, Surat Thani, Phuket, Trat and Chon Buri's Bang Lamung district.

A cold chain storage facility of JWD InfoLogistics.

The targets of the service are the operators in business-to-business (B2B), business-to-customer (B2C) and customer-to-customer (C2C) modes.

Charvanin Bunditkitsada, chief executive of JWD InfoLogistics, said his company was the market leader in cold chain logistics and supply chain business with more than 25 years in operation.

It has been providing cold chain express services for customers in the B2C and C2C modes for two years under the branding of JWD Express.

"The collaboration is an important milestone to see a leapfrog in the cold chain express industry," he said.

Komsan Lee, chief executive of Flash Express, said the size of the cold chain market was growing steadily as a result of rising consumer demand in the agricultural transportation, fresh food franchise business, and medical and healthcare sectors.

"We join hands with the two logistics leaders to compete in the field and aim to become a market leader in Thailand and Asean," Mr Komsan said.

He said more than 100 IT personnel from Flash Express will be involved in cold chain management system in various areas, including technology adoption, cloud computing, system infrastructure, system integration and order management system.

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