BANGKOK – JWD InfoLogistics (SET:JWD), a leading fully integrated in-land logistics service provider, adopted a business plan for 2017 that emphasises actions to pump up revenues from the recent investments in ASEAN markets as well as maintain domestic growths, especially in the growing segments of cold storage (by focusing more on poultry products to cope with the declining demand for storage of seafood products), automobile parts management, JWD Chemical Supply Chain Center (JCS) and cargo transport.
It is confident of achieving more effective cost control as major operating and business development expenses have been recognised last year, and aims to increase the share of revenue from overseas markets from the current level of 8% of total revenue to 25% by 2020.
Mr Charvanin Bunditkitsada, Chairman of the Executive Committee and Chief Executive Officer of JWD, revealed JWD’s business plan for 2017, which targets a minimum 7% revenue growth rate, to be achieved by earning revenue from the company’s recent investments in ASEAN markets – eg the general/cold storage warehouses in Laos (720sq m), Myanmar (4,300sq m) and Cambodia (4,428sq m), the cross-border cargo transport business that is run in the CLMV markets and Malaysia in partnership with Srithai Group, etc – and maintaining domestic growths, especially in the four segments that are expected to experience healthy growths in 2017: i) cold storage warehousing; ii) automobile and parts management; iii) hazardous cargo storage and management and iv) cargo transport.
To promote domestic growths, JWD has remodeled its cold storage warehousing business to reduce reliance on the declining demands for storage of seafood products from 70% (of total revenue from cold storage warehousing) to 40% by this yearend, and to tap more demands for storage of poultry products.
Its cold storage warehouse within the Free Zone on Bang Na-Trat Road (KM19) has attracted customers’ interests in renting the warehouse space for use as an international distribution hub for the region. It has built a frozen storage unit at its cold storage warehouse on Suwinthawong Road to generate more revenue, and installed rooftop solar cells at cold storage warehouses, which will cut power bills by more than THB 3 million annually.
The automobile storage and management segment is forecasted to record significant growths in 2017, driven by the recent formation by JWD and Siam Motors Industries Co Ltd, a major automotive parts manufacturer, of a joint venture firm tasked with supplying logistics services for automotive parts to the partner, which is expected to begin operation in Q1.
The hazardous cargo warehousing will earn full-year revenue from the ‘JWD Chemical Supply Chain’ (JCS) centre within Laem Chabang port, Chon Buri, where chemicals leaving the port are handled to create added values. The cargo transport segment will be expanded to include business-to-customer (or B2C) services in addition to the existing business-to-business (or B2B) services.
“This year we will reap revenue from the investment projects that have been introduced over the past two years and begun commercial operation. For example, the warehousing business in Laos, Myanmar and Cambodia will generate full-year revenue. Domestic businesses are forecasted to experience growths. The cold storage warehousing segment is benefiting from the rising demand from seafood businesses, and the volumes of hazardous cargo containers handled at Laem Chabang port are growing, which will foster growths in 2017”, said he.
He added that JWD is confident it will achieve more effective control of operating costs and expenses, as major expense items, eg business expenses, business development expenses, investment advisors’ fees, etc, have been recognised for Q2 and Q3 of 2016, and provisions made for contingent liabilities. These will lead to better cost control and performances in 2017.
The company seeks to increase the share of revenue from overseas markets from the current level of 8% of its total revenue to 25% by 2020, as a way to stimulate growths and secure leadership in ASEAN’s logistics industry by 2020.
It aims to build a new warehouse in Vientiane, Laos, in 2017 to tap the forecasted increasing demand there for rental space for cargo storage and to explore decent investment opportunities in ASEAN markets to enhance its capacity to offer integrated solutions.
“Seeking to become ASEAN’s leader in logistics business, we are committed to both strengthening our domestic businesses and grasping overseas investment opportunities to achieve synergy and integration, using our capacity to provide specialised logistics services to enable us to grow further,” he noted. – BusinessNewsAsia.com