Kerry Logistics announced a new joint venture with Sri Lanka-based IAS Holdings to strengthen its international freight forwarding capabilities in South Asia targeting the flourishing textile industry there.
The joint venture called Kerry Logistics Lanka (Kerry Lanka) will be headquartered in Colombo — sitting at the strategic crossroads of East Asia, South and South-East Asia, Africa and Europe.
As part of Kerry Logistics’ South Asia operation, aside from Kerry Lanka office in Colombo, it also has a bonded facility and office for export purposes at the Bandaranaike International Airport.
Textile industry focus
The Hong Kong-based logistics company noted Sri Lanka's textile industry which it is looking forward to supporting.
Citing the Central Bank of Sri Lanka, Kerry said in 2019, 46% of the total export of Sri Lanka derived from the textiles and garments industry, amounting to US$5.6 billion.
There are also more than 300 apparel manufacturers in Sri Lanka, which are well connected to the super brands in Europe and the US.
Kerry Logistics said its expansion to Sri Lanka will enable it to tap into the opportunities therein by offering a suite of services consisting of air and ocean freight, customs brokerage, inland trucking, multi-country consolidation, project cargo, warehousing and value-added services such as pick/pack, purchase order management, quality control, packaging and labelling, garment-on-hangers and entrepôt services.
“Located in Sri Lanka, the intersection of freight routes in South Asia, Kerry Lanka will become a significant hub for Kerry Logistics and give a strong boost to our global connectivity," said Patrick Cheah, executive director - Global Air of Kerry Logistics.
"Plans are also in place to aggressively focus on the upstream of the supply chain to support the fashion industry vertical. The forming of the joint venture also marks the deepening of our presence in the South Asian subcontinent, rounding out our full suite of services in the region,” he added.
In addition to Kerry Indev Logistics in India, Kerry Logistics has also established a subsidiary in Pakistan in 2018 to extend its footprint in the Indian subcontinent.
