Logistics firm spending P2 billion to expand cold chain project

MANILA, Philippines — Fast Logistics Group plans to spend about P2 billion to expand its cold chain footprint in the next two years, following the opening of hubs in Cavite and Cebu.

In a virtual briefing yesterday, Fast Logistics Group president and chief executive officer William Chiongbian II said the firm, which has just launched Fresh by FAST or a new generation of temperature-controlled logistics solutions, as well as two cold chain hubs, is setting aside around P2 billion to open more cold chain facilities in the country.

“Our goal within the next two years is to potentially expand to about a little over 100,000 pallet positions,” he said.

At present, the firm’s cold chain footprint is at 30,000 pallets.

“Geographically, we need to put up at least another one or two in the Luzon area. We are looking at two hubs in Mindanao and potentially one in West Visayas and one in East Visayas for now,” Chiongbian said.

He said the cost would be funded through a combination of debt and equity.

While the company is also considering holding an initial public offering to support continued growth of the business, he said this would not be done in the immediate future.

“We will be needing fuel to grow and that is definitely an option,” he said.

The firm spent P500 million for the Cebu hub, the country’s first intelligent cold storage plant.

The facility is equipped with temperature and humidity sensors for mobile and web-based monitoring, allowing 24/7 visibility for customers from the comfort of their home or office.

Meanwhile, the Cavite hub which serves Luzon’s cold chain requirements, opened last July.

Cold Chain Association of the Philippines president Anthony Dizon welcomed the entry of the firm in the industry, noting while there is adequate capacity in urbanized centers, additional capacity would be needed in other parts of the country.

“There is already an observed need for additional facilities in other parts of the country which are not adequately serviced today by the cold chain industry because of certain limitations that continue to exist,” he said.

Dizon said the group’s latest survey showed the current capacity of the cold chain industry in the country is estimated at approximately 550,000 pallet positions or equivalent to a holding capacity of about 500,000 tons of various food products.

Founded in the 1970s, Fast Logistics is engaged in transport logistics, warehouse management, selling distribution, toll manufacturing, and value-adding supply chain services.