JWD to acquire 20% stake in ESCO, sealing partnership with PSA
2021年7月27日 - 08:00PM
JCN Newswire
JWD InfoLogistics PLC (JWD), specialized in ASEAN logistics and
supply chain solutions, announces a major investment, when on July
23 it agreed to acquire a 20% stake in ESCO, a Thai shipping
container port operator and supply chain operator, with PSA
Singapore, the world's largest port operator by equity-weighted
throughput, as ESCO shareholder. With the acquisition, JWD will
become a major international container terminal operator at Laem
Chabang Deep-Sea Port and inland container depot (ICD) service
provider at Ladkrabang, increasing its capability for multimodal
transportation services, by land, sea and rail.
Mr Charvanin Bunditkitsada, Executive Committee Chairman and CEO of
JWD, said "This investment is in line with our 5-year strategic
plan to increase capability for multimodal transportation services.
On July 23, our Board of Directors authorized JWD Transport
(Thailand) Company Limited, a subsidiary of JWD, to acquire 20% of
the shares in Eastern Sea Laem Chabang Terminal (ESCO), a major
international container terminal operator at Laem Chabang Deep-sea
Port in Chonburi Province and an inland container depot (ICD)
service provider at Ladkrabang. With the share acquisition, JWD
also becomes a business partner of PSA, manager and operator of
Singapore's world-class transshipment hub, as PSA is also a
shareholder in ESCO.
"We consider this significant investment a major undertaking this
year, to be funded by the recent issuance of debentures as well as
from operating cash flow. Initially, JWD Transport will take a 15%
effective share in ESCO, with an option to increase to 20% within
the next 6-12 months," Mr Charvanin said.
ESCO currently operates international container terminals at 3
locations within the Laem Chabang Deep-Sea Port; i) ESCO (B3),
where ESCO directly develops and manages a concession from the Port
Authority of Thailand (PAT); ii) LCB1 (B1) terminal and iii) LCMT
(A0) terminal, with ESCO a shareholder of the company that holds
the concession to operate both terminals. In 2020, the three cargo
terminals handled about 2 million twenty foot-equivalent units
(TEUs), or 20% of the total throughput processed at the Laem
Chabang Deep-Sea Port. The demand for services at the international
container terminals is expected to grow continuously with the
recovery of the world economy following improvements in the
pandemic situation in the USA and Europe.
ESCO is also one of 6 inland container depot (ICD) service
providers at Ladkrabang handling container traffic for various
shipping lines not located within Laem Chabang Port, helping reduce
lead time and transportation cost. Revenue is derived from the
operation of the container yard and import and export warehouses,
along with Customs clearance services, and furbishing and
transporting containers by land and rail - which will increase
opportunity for JWD's freight business and offering additional
services to users of Ladkrabang ICD Station.
"JWD expects to realize its share of capital gains from ESCO no
later than October," Mr Charvanin added. "The investment in ESCO
will serve as an extension of our international freight port
operations in Laem Chabang. With our stake in Transimex, a major
logistics provider from Vietnam, incoming international shipping
port service business will empower us to provide multimodal
transportation services, connect a wide range of freight services
including by car, rail, water, and increase the opportunity to
expand our customer base from container port service and ICD
Ladkrabang station service to provide a full range of logistics
services.
"JWD is already providing multimodal transportation services, such
as transportation and transfer of general cargo, vehicles,
hazardous cargo and chemicals, the transportation of cargo from
Bangkok to the international container terminal at Laem Chabang,
the lifting and transport of containers by rail from the Northeast,
from the Eastern Economic Community (EEC), as well as the
industries from Rayong Province to Laem Chabang Port. Therefore,
this investment will help to expand our customer base as well as
both our Bangkok-to-Laem Chabang and ICD Ladkrabang-to-Laem Chabang
transportation services. Also significant is the provision for
using the cargo traffic data from Laem Chabang international port
to further develop our logistics capabilities," Mr. Charvanin
concluded.
Visit: JWD InfoLogistics PLC (SET: JWD); Bloomberg: JWD.TB,
Reuters: JWD.BK; https://jwd-group.com/en/.
Media: Yuttachai Praikanahok, MT Multimedia for JWD, T: +66 9 1736
2866, E: yuttachai.p@mtmultimedia.com
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