Category Archives: Warehousing

Kawasaki Kisen Kaisha (K Line) announced that its group company in Thailand, Bangkok Cold Storage Service (BCS) and K Line Container Service Thailand (KCST) will establish new warehouses in Bang Na district near Bangkok. Currently, BCS is operating two freezing and refrigerating warehouses in two locations, where are Thepharak district and Bang Na district, and KCST is operating ten dry warehouses in three locations where are Bang Na district, Amata City Chonburi district and Bangpra district. Both BCS and KCST have been operating warehouse businesses for more than 30 years in Thailand. K Line said that this decision has been taken to support the expanding distribution demand in Thailand and the diverse needs of its customers.

SSI SCHAEFER and Tee Yih Jia Food Manufacturing Pte Ltd., are set to launch Singapore’s largest automated rack-clad high bay warehouse storage facility in Q1 2022 at Tee Yih Jia’s new $450 million production facility in Senoko – the “Tee Yih Jia Food Hub”. The upcoming Tee Yih Jia facility consists of three warehouses — two cold rooms and one ambient temperature dry store — and features rack clad high bay warehouse with an automated storage and retrieval system (ASRS) which allows the automated placement and retrieval of high-volume loads from TYJ’s storage locations. Spanning more than 100,000 pallet positions of frozen storage racks, TYJ’s food factory and warehouse storage facility sits on a land area of 40,000 m². It is installed with 15 SSI EXYZ cranes which is estimated to be able to move up to 300 pallets per hour with automation technology. This cooperation comes as warehouse automation booms across the Asia-Pacific region. The APAC automated storage and retrieval systems (ASRS) market is forecast to grow at a CAGR of about 10% between 2021 and 2026. This growth is prominent in the food and beverage (F&B) industry, as companies recognize the advantages provided by ASRS systems and increase focus towards market adoption.

CEVA Logistics has further cemented its role as a leading player in the Southeast Asia wine and spirits sector after winning a three-year contract with Diageo to handle warehousing and value-added services in the Philippines. Diageo is one of the world’s largest alcoholic beverage producers, and the new deal builds on an existing relationship between the companies over the last two years with CEVA responsible for handling Diageo’s air and ocean import brokerage requirements. The contract further positions CEVA Logistics as the only 3PL serving the Top 3 global wine and spirits companies with transport and warehousing services in the Philippines. Under the terms of the contract, Diageo will become one of the first clients at the soon-to-be-completed CEVA Logistics Ruhale Taguig warehouse in southeast Manila. CEVA will manage full distribution center operations for Diageo’s range of products, including a temperature-controlled section for domestic distribution throughout the Philippines. CEVA will also provide tax stamping and labelling of more than four million bottles each year. With its extensive experience of operating with leading players across the beverage industry, CEVA will deliver full transparency to the customer to enable improved monitoring of the entire operation through its warehouse management software which will be integrated with Diageo’s enterprise resource planning platform.

E-commerce giant Amazon India has entered into an agreement with GMR Logistics Park Pvt Ltd as of August 19, 2021, to lease a 10 lakh sq ft of warehousing space for a period of 20 years, in Hyderabad, as revealed by Propstack. The chargeable area is 10.08 lakh sq ft and the starting rent is around INR 2 crore per month (INR 20.15 per sq ft). The lease starts from April 15, 2022, as per documents. As per the clause mentioned in the lease agreement, there will be a rental escalation of 15 percent every three years. GMR Logistics Park Pvt Ltd is expected to hand over the first phase of the leaseable premises on April 15, 2022, and phase 2 of the leasable premises on September 1, 2022, the documents showed

SpiceXpress is creating unique propositions in the Indian Logistics field by inaugurating the first of its kind Airport Based Free Trade Zone Warehouse in GMR Hyderabad international Airport, Telengana. At a time when India and the state of Telengana in specific is looking forward to promote the export and import of goods and help the manufacturers and traders boost their business we at SpiceXpress have taken the initiative of creating the Free Trade Zone at GMR Hyderabad International Airport, which is the right solution. A free-trade zone (FTZ) is a class of special economic zone. It is a geographic area where goods may be imported, stored, handled, manufactured, or reconfigured and re-exported under specific customs regulation and generally not subject to customs duty. “Most of our free trade zones are on the sea port side helping the manufacturers and traders who use the sea mode. Manufacturers and traders using Air mode, specifically Pharma, E Commerce, Aero Space, Perishables, etc had logistical challenges using these free trade zones. We at SpiceXpress are the first ones to set up a Free Trade Zone (FTZ) Warehouse on the Airport Side.”said Sanjiv Gupta, CEO, SpiceXpress

The warehousing sector’s meteoric rise to prominence in India was spurred by the introduction of GST leading to consolidation and the central government’s decision to grant ‘infrastructure status’ to the logistics sector including warehousing. Furthermore, with 100% FDI permitted in warehousing and logistics alongside maturated state-level warehousing policies, the sector has been seeing rapid institutionalization and subsequent inflow of major investments. The investments grew from USD 675 million during 2014-2016 to USD 2.3 billion from FY 2017-2019 in the top 8 cities of India. In 2020, the pandemic reinforced a structural shift in consumer preferences – accelerating the penetration of online sales even in tier-2 and tier-3 cities, thus giving a huge boost to the sector. Any e-commerce operation needs a strong and robust supply chain network, of which, modern warehousing forms a critical component. As global e-commerce companies rapidly look to expand in their battle for retail supremacy, investments in infrastructure like warehousing; especially well located, modern, compliant with very high construction quality; will remain a top priority. In a previous report, we have also estimated that e-commerce companies themselves will require at the very least 25 million sq. ft. of Grade-A warehousing stock in 2025 across the country which in 2020 was 9.3 million square feet.

SpiceXpress keeps up to its tradition of creating unique propositions in the Indian Logistics field by inaugurating the first of its kind Airport Based Free Trade Zone Warehouse in GMR Hyderabad international Airport, Telengana. At a time when India and the state of Telengana in specific is looking forward to promote the export and import of goods and help the manufacturers and traders boost their business we at SpiceXpress have taken the initiative of creating the Free Trade Zone at GMR Hyderabad International Airport, which is the right solution. A free-trade zone (FTZ) is a class of special economic zone. It is a geographic area where goods may be imported, stored, handled, manufactured, or reconfigured and re-exported under specific customs regulation and generally not subject to customs duty. Most of our free trade zones are on the sea port side helping the manufacturers and traders who use the sea mode. Manufacturers and traders using Air mode, specifically Pharma, E Commerce, Aero Space, Perishables, etc had logistical challenges using these free trade zones. We at SpiceXpress are the first ones to set up a Free Trade Zone (FTZ) Warehouse on the Airport Side. We thank Jayesh Ranjan, IAS, Principal Secretary to Government of Telengana, I&C and ITE&C Department for gracing the occasion and inaugurating the facility and opening it for all the manufacturers and traders to use.

Singapore-based Xander Investment Management (“Xander”) recently announced that its industrial platform has acquired an additional 1 million square feet of warehousing space in Free Trade and Warehousing Zone (FTWZ) located at Sriperumbudur, near Chennai, Tamil Nadu. Xander which already owns 1 million square feet of warehouses in the FTWZ with this acquisition has immediately doubled its ownership in the park to 2 million square feet. Notified as the first FTWZ in India, and recently approved as a Multi-Sector SEZ, the park provides Grade-A warehousing and industrial facilities to global operators and manufacturers. Many big names such as DHL, DB Schenker, Kerry Indev, TVS Supply Chain, and Seaways Supply Chain are currently the occupiers of the facility. “The expansion in JMFTZ is fueled by strong tenant performance and enhanced demand from existing and new occupiers. The new facilities will provide a further thrust to the logistics and manufacturing sectors in the region and act as a catalyst for more rapid economic development in Tamil Nadu. We are leveraging our expertise and knowledge to design best in class industrial/ logistics infrastructure with an emphasis on ESG and sustainability,” said a Xander spokesperson.

As the Indian growth story has progressed, the logistics industry has played a vital role in empowering other sectors. G.V. Sanjay Reddy, Vice Chairman GVK, highlights “how the logistics sector in India, which was at $160 billion in 2017, has witnessed a tremendous growth. In 2020, its market was estimated at $215 billion”. The underlying factors driving this upward trend is the increasing demand of e-commerce in the non-metro cities of India. In recent years, e-commerce has expanded aggressively to tier-2 and tier-3 cities across the country, which has further led to the growth of the logistics sector to keep up with the rising demand. In the fourth quarter of 2020, smaller cities accounted for 46 per cent share in total e-commerce volumes, marking a steep 14 per cent rise from the period just before the Covid-19 pandemic spread. A striking reason for the increased online spending per customer in these cities is driven by the development of last-mile delivery by the logistics companies and an exponential increase in the warehousing space. This trajectory is expected to continue with annual investments being made to the tune of $500 billion, with the projected CAGR for 2019-2025 standing at 10.5 per cent. Similarly, the investments made in the warehousing segment have increased by $7.12 billion between 2018 and 2020.

CBRE South Asia Pvt. Ltd., India’s leading real estate consulting firm, announced the findings of its ‘INDIA’S INDUSTRIAL & WAREHOUSING SECTOR: TENACIOUS AMIDST THE TURNING TIDE’ report. Against the backdrop of robust growth of manufacturing, e-commerce and third-party logistics (3PL) sectors, the report highlights how Industrial and Warehousing (I&W) activity has gained momentum over the past few years in India. The report delves into the dynamics of the current manufacturing ecosystem in India and its improving prospects as an alternative supply chain destination on account of elements such as favorable demographics, relatively low labor costs, and continued thrust on infrastructure improvement and policy reforms. Anshuman Magazine, Chairman, India & South-East Asia, Middle East & Africa, CBRE, said, “Over the past decade, India has consistently aimed at diversifying from a services-based economy to becoming an alternate manufacturing destination in APAC. As a result, the demand in the Indian I&W sector has surged, making it one of the key growth drivers of the real estate industry. With strong government support to ease investment norms through attractive tax sops and policy initiatives, we can expect increased interest from domestic and global manufacturers.”