Yasuhisa Fukuda (L), chairman of Senko Group Holdings Co., and Rit Thirakomen, chairman of MK Restaurant Group Public Co., shake hands at the opening ceremony of their joint venture’s cold storage warehouse in Samut Prakan Province, south of Bangkok, on Oct. 8, 2019.
BANGKOK, NNA – Japanese logistics service firm Senko Group Holdings Co. has opened a cold storage warehouse with a local partner in Thailand to cash in on growing transport demand for fresh produce there and in neighboring countries.
M-Senko Logistics Co., its joint venture with dining chain operator MK Restaurant Group Public Co., is set to run the temperature controlled facility near Bangkok with a total investment of 1.75 billion baht ($57.7 million), they said at an opening event on Tuesday.
The 22,000-square meter warehouse, located in Samut Prakan Province, a 30-minute drive south of the capital, serves restaurant chain operators, food makers, convenience stores and supermarkets. It has been built on a 53,200-sq. meter plot, according to the local venture’s statement.
The local unit, established in March 2018, had mainly taken on food transport services for 700 dining outlets of the local partner since July in the same year with a rental warehouse and 150 refrigerator trucks, Yasuhisa Fukuda, chairman of Senko Group Holdings, said.
In February this year, it began providing a logistics service to the first Thai outlet of Don Don Donki, a Japanese discount store in central Bangkok, according to Kazunori Sakakibara, managing director of the joint venture.
The size of the Thai logistics market is estimated at 280 billion baht, with the cold chain food transport segment accounting for 26 billion baht, which has “big room to grow,” M-Senko Logistics Deputy Managing Director Pongchai Pipitvijitkorn said.
M-Senko Logistics expects the new warehouse to generate at least 1 billion baht in revenue in the third year of operations and target over 1.6 billion baht in 2025, the statement said.
It intends to capture logistics demand from food makers that convert their logistics and warehouse spaces into those for food processing operations and outsource the functions to transport service providers, Sakakibara said.
The local unit also plans to initially export frozen shrimp from Thailand to Vietnam within this year and launch cross-border services to ship goods to Cambodia, Laos and Myanmar as well.