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SCGJWD Logistics PCL is further expanding its cold storage warehouse business, increasing coverage to Indonesia, the Philippines, Malaysia and Singapore
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The enlarged regional cluster capitalizes on the growth of cold storage in the region
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In the Philippines, SCGJWD established in 2023 a partnership with Royal Cargo, SCG Logistics
SCGJWD Logistics PCL, an integrated logistics and supply chain service provider in ASEAN based in Thailand, is further expanding its cold storage warehouse business, increasing coverage to Indonesia, the Philippines, Malaysia and Singapore from the CLMV (Cambodia, Laos, Myanmar, and Vietnam) + China group of countries.
The enlarged regional cluster capitalizes on the growth of cold storage in the region and leveraging cold storage as a growth driver for the core business.
Bunn Kasemsup, Co-CEO of SCGJWD Logistics, said the company recognized the economic growth potential in Indonesia, the Philippines, Malaysia and Singapore as leading ASEAN countries driving regional economies.
According to Bunn: “We are expanding our cold storage warehouse and temperature-controlled transport business from the CLMV + China’ group of countries to these Southeast Asian countries to enhance our position as a Cold Chain Hub in ASEAN – a strong center of the cold storage warehouse business, including the creation of regional cold storage warehouse clusters.”
In the Philippines, SCGJWD partnered with Royal Cargo, Inc, to establish SCG Logistics Philippines Co., Ltd., a joint venture in 2023.
READ: Royal Cargo-SCG Logistics form new venture
SCGJWD recognized growth opportunities in the cold storage business in the Philippines and the potential in Royal Cargo, which operates over 140,000 square meters of cold storage space, capable of accommodating over 33,000 pallets. Discussions are currently underway to further expand investment in the Philippines.
SCGJWD has invested in logistics services in Indonesia since 2017 through joint venture PT SCG Barito Logistics, and is capable of providing country-wide logistics services, covering the major islands of Java, Sumatra, Kalimantan, Sulawesi, Bali, and Maluku.
Services include land transport, general warehousing and dangerous goods storage, with a fleet of more than 200 trucks.
In 2025, SCGJWD expects to realize a revenue of $45 million, an 8% year-on-year increase, mainly from serving customers within the SCGJWD Group and Thai companies investing in Indonesia.
Malaysia was the latest country SCGJWD has invested in, partnering with Swift Haulage Berhad, a major integrated logistics service provider listed on the Malaysian Stock Exchange, to establish joint venture Swift Cold Chain Sdn Bhd to invest in three cold storage warehouse projects.
These are: (1) The GVL Cold Chain project, within Shah Alam International Logistics Hub covering approximately 11,000 m2 with a 10,000 pallet capacity. (2) The cold storage warehouse project in Johor Bahru covering 10,000 m2 with a 10,000 pallet capacity.
“SCGJWD prioritizes the expansion of its logistics clusters in Indonesia, the Philippines, Malaysia, and Singapore, all of which are leading ASEAN countries with high growth potential. However, due to their archipelago-like geography, freight transport requires expertise and a truly comprehensive service network including solutions to meet the specific needs and addressing logistics and supply chain issues for customers,” Bunn said.
Charvanin Bunditkitsada, Co-CEO of SCGJWD, said the ‘CLMV + China’ markets are strategically important for SCGJWD’s cold storage business, with a broad market base covering both domestic consumption and import-export markets. This collaboration enables SCGJWD to connect and enhance its cross-border transportation services for temperature-controlled goods and general goods on the Thailand-ASEAN-China route.
SCGJWD, in collaboration with its partner RMA, has expanded its cold storage warehouse in Cambodia by 1,200 m2, bringing the total floor area to 3,400 m2, with an investment of $550,000 Recently, the Company partnered with Express Food Group, Cambodia’s major operator of food chain franchises, including The Pizza Company, Dairy Queen, and Swensen’s, to import and transport cooking equipment from Thailand to Cambodia.
SCGJWD’s goal is to make cold storage and temperature-controlled transportation a core growth driver, which aligns with the overall projection of the cold storage business in ASEAN from 2022 to 2027.
A good example is Indonesia, whose total cold storage market is expectedto increase by nearly 80%, from $6.9 to $12.5 billion. The Philippine market is likewise expected to increase by 46.5% from $5 to $7.4 billion. Malaysia’s market is expected to increase by 29.5% from $1.836 toS$2.377 billion, and Singapore’s market is forecast to increase by 25.6 percent from $829 million to $1.041 billion, while Vietnam’s market is projected to increase by 47.2% from $4.3 to $6.4 billion, and Thailand’s market is expected to increase by 38.7% from $3.4 to $4.7 billion.
