SCGJWD Pursues Comprehensive Logistics Solutions for Temperature-Controlled Goods Across ASEAN, Responding to Economic Recovery and Strong Growth Trends in Cold Storage Warehousing, Food, and Healthcare Industries from 2024-2029. Implements 4 Strategies, Continues Investment in Thailand at 8 Strategic Locations, Aggressively Seeks New Opportunities Abroad, Collaborates with Partners to Expand Business and Offer Solutions, Focuses on High-Potential Healthcare and Pharmaceutical Markets, Utilizes AI Technology to Enhance Logistics and Save Energy, Driving Continued Revenue Growth
Mr. Charvanin Bunditkitsada, Co-Chief Executive Officer of SCG JWD Logistics Public Company Limited (SCGJWD), the largest integrated logistics and supply chain service provider in ASEAN, revealed that the overall economic recovery and resurgence of tourism have led to increased demand for storage and transportation of frozen foods and ready-to-eat frozen meals. This growth stems from both domestic consumption and Thailand’s role as a production base for exports. Additionally, the expansion of new high-value industries requiring temperature-controlled storage, such as pharmaceuticals, cosmetics, and animal feed, has contributed to the continued growth of the temperature-controlled logistics business in Thailand. The overall Cold Chain Logistics industry in Thailand is projected to grow at an average rate of 8.03% per year over the next 5 years (2024-2029), with an estimated total market value reaching $1.78 billion by 2029.
SCGJWD’s business plan aims to strengthen its temperature-controlled logistics business to enhance competitiveness by leveraging current strengths, such as being the largest public cold storage service provider with 8 locations nationwide, totaling over 241,000 pallets, equipped with automated storage systems, and certified with international standards and all types of licenses. For 2025-2029, the company has allocated an investment budget of over 1 billion baht for the cold storage warehouse business, aiming to drive revenue growth at an average rate of 12.8% per year, targeting revenue of 1,100 million baht by 2025. This growth is underpinned by four key strategies driving the expansion of temperature-controlled logistics business in Thailand and ASEAN:
Expand Cold Storage Warehouse Hubs in Regional Provinces: Invest in expanding cold storage warehouses in strategic provinces connected to major transportation systems, enhancing convenience in goods distribution, reducing transportation time, and saving logistics costs. Currently, SCGJWD operates 8 cold storage warehouses nationwide, with plans to convert existing SCG Logistics general warehouses to accommodate refrigerated and frozen goods in 8 more strategic provincial locations, increasing service capacity by 24% to 300,000 pallets by 2029.
Expand Business in ASEAN: The company plans to create new business opportunities by expanding investments and collaborating with partners in ASEAN, including cooperation with SWIFT to expand cold storage warehouse business in Malaysia, as well as expanding business in the Philippines, Indonesia, and Vietnam through partnerships with strong local partners and exploring M&A opportunities.
Collaborate with Partners to Expand Business and Design Logistics Solutions Tailored to Customers’ Business Needs: The company has formed joint ventures, such as with Thai Union Group to invest in an automated cold storage warehouse (ASRS) for tuna storage in Samut Sakhon, and with PTT Oil and Retail Business Public Company Limited (OR) to provide bakery delivery solutions to over 500 Amazon Café branches nationwide using innovative Cool Container technology.
Expand End-to-End Supply Chain Solutions in Healthcare and Pharmaceutical Businesses: Leverage strengths in expertise, nationwide temperature-controlled transportation and warehousing services, international standard certifications, quality assurance systems, and value-added services to expand services under key strategies, including targeting high-potential customers and focusing on profitable pharmaceutical and vaccine segments.
Mr. Bunn Kasemsup, Co-Chief Executive Officer of SCGJWD, added that the company applies technology and AI throughout the supply chain process to enhance cold storage warehouse management, improving speed and accuracy while efficiently managing costs. This includes using Automated Storage Retrieval System (ASRS) technology for rapid and accurate (99.9%) storage, and installing AI systems for tuna size sorting with over 95% accuracy, with plans to expand to fish species sorting next year.
The company is committed to operating under the ‘Green Logistics’ approach, installing Solar Rooftop panels at all cold storage warehouses, transitioning to electric forklifts, and utilizing ASRS technology to reduce electricity consumption and increase storage capacity. These technologies have helped the company manage electricity costs better and reduce carbon dioxide emissions. Since 2017, the company has saved over 200 million baht in electricity costs and reduced greenhouse gas emissions by over 33,000 tons of carbon dioxide equivalent. The Transport Management System (TMS) technology further helps optimize transportation routes, saving fuel and reducing carbon dioxide emissions, contributing to the company’s goal of achieving Net Zero by 2050.
Published on: Oct 3, 2024