JWD, a leading fully integrated in-land logistics service provider, disclosed its 2016 plan to expand aggressively in Asean. For the CLMV markets, it has begun commercial operation of warehouses for general goods and cold storage goods in Laos on 4 January, and is opening more in Myanmar in February and Cambodia in July. The company’s management declared its commitment to increasing its investment in the region continuously to tap the opportunities created by the AEC introduction, with the ultimate aim to secure a leader position in the Asean logistics market, and forecasted a two-digit total revenue growth rate and a remarkable net profit figure for 2016. It is studying the approaches to raising funds through establishment of a REIT or issuance of debentures to finance its continuous expansion.
Mr Charvanin Bunditkitsada, Chairman of the Executive Committee and Chief Executive Officer of JWD Infologistics PCL, or JWD, a leading fully integrated in-land logistics service provider, revealed that the company has set the goal to record a two-digit y-o-y revenue growth rate in 2016, and forecasted a net profit growth rate higher than the revenue growth rate due to shrinking financing costs and effective control of SG&A expenses. Growth drivers will be its logistics business expansion in Thailand and other Asean countries amid signs of domestic economic recovery and the official establishment of the Asean Economic Community (AEC) in 2016, which will facilitate regional expansions of manufacturing bases and create a greater level of logistics demands, he said.
In 2016, JWD will make expansions either by direct investment or through partnership with local firms or mergers and acquisition. It is also turning its existing cargo storage facilities within Laem Chabang port into a 9,000sq.m. LCL consolidation hub, and another area into a 6,000sq.m. distributiom centre for dangerous goods, the commercial operation of which will begin in late Q2.
JWD also seeks to increase the volume of on-site service for automobile storage and management at customers’ automobile manufacturing sites, and is considering Thailand’s trade and investment climate before deciding to build an additional warehouse on a 33-rai (13-acre) plot on Bang Na-Trat Road (KM 19) to tap growing logistics demands.
For overseas expansions, the CEO added that the company, in partnership with RMA Group, holder of fast food restaurant franchises, eg The Pizza Company, Swensens, BBQ Chicken, Costa Coffee, etc, has moved to expand its business of providing general warehouses and cold storage warehouses in the CLMV markets, beginning with the launch in Laos on 4 January, which will be followed by those in Myanmar in February and those in Cambodia in July.
“We seek to invest our capital in the Asean logistics market continuously. We are studying the feasibility of doing that for several countries, eg Myanmar, Laos, Cambodia, Vietnam, Philippines, Indonesia, Malaysia, etc. We have an ambition for leadership among the fully integrated in-land logistic service providers in the region, where we see have significant room for business expansion,” noted he.
Dr Eakapong Tungsrisanguan, Chief Financial Officer of JWD, added that, in 2016, the company seeks to raise about THB 2 billion to finance the continuous enhancement of its presence in Asean, and is studying the options of introducing a real estate investment trust (REIT) or issuing debentures. The conclusion is expected to be reached in Q2, he said.