JWD Acquires Stake in PPSP, Developer of Cambodia's Largest Industrial Estate, to Join 'Logistics Centre' Investment Project, Boost Overseas Growth
JWD, Thailand's leading provider of fully integrated land-based logistics services, has invested more capital in Cambodia, acquiring shares in Phnom Penh SEZ Plc (PPSP), a major industrial estate development firm listed on Cambodia Securities Exchange, in hope of grasping an opportunity to jointly invest in the project for development of a logistics centre within Cambodia's largest industrial estate in Phnom Penh to tap growing demands for cargo transport services among industrial firms. Its management also highlighted future opportunities to participate in development of Cambodia's new special economic zone.
Mr Charvanin Bunditkitsada, Chairman of the Executive Committee and Chief Executive Officer of JWD Infologistics Public Company Limited, or JWD, Thailand's leading provider of fully integrated land-based logistics services, revealed that, after building warehouses for rental in Laos, Myanmar and Cambodia through partnerships, the company has made another milestone step to implement the policy to enhance its presence in the Asean logistics industry, by increasing its investment in Cambodia's logistics business to capitalise on the country's economic and logistic demand growth potentials.
JWD makes its latest investment in Cambodia's logistics market by acquiring 5.2% of the shares of common stock in Phnom Penh SEZ Plc (PPSP), a local industrial estate firm, during PSPP's initial public offering of capital-increase shares. A joint-venture firm established by Cambodian and Japanese operators and having recently listed on Cambodia Securities Exchange, PSPP is the developer of Cambodia's largest industrial estate, which is located in the capital city of Phnom Penh.
Currently, PPSP has completed two phases of the industrial estate project, the areas of which have been 75% occupied, and is planning to enter the third phase - building a logistics centre to connect the rail transport system leading to Sihanoukville port - to satisfy the demands for such centre that meets international standards among firms in the estate, the majority of which are manufacturers of goods for export. Recognising JWD's more than 35 years of experience and expertise in offering fully integrated land-based logistics solutions, and eager to achieve the level of operational efficiency as offered by the Thai company's software, it has agreed to engage JWD as its partner in the planned development of such centre.
"We are interested in the logistics centre development project. Its strategic location, with close proximity to the railroad running to Sihanoukville port, where cargoes are loaded for export, makes it feasible for us to invest in such project. We also seek to offer rail transport-related services there in the future," said he.
He added that JWD is also interested in making further joint investments with PSPP to create Cambodia's new special economic zone in the border district of Poi Pet, on the opposite side of Aranyaprathet district in Thailand's Sa Kaeo province, to benefit from Cambodia's healthy industrial growths and attractiveness as a manufacturing hub for both local and international firms.
The increased presence in Cambodia will strengthen and grow JWD's overseas logistics business. The company has set goals to increase the share of overseas revenue from the current level of about 8% to 25% of total revenue by 2020 and become a leading player in Asean's logistics service industry in the near future.