Kerry Logistics Forms New Joint Venture in Sri Lanka to Strengthen IFF Capabilities in South Asia

HONG KONG, CHINA – Media OutReach – 11 May 2020 – Kerry Logistics Network Limited (‘Kerry
Logistics’; Stock Code 0636.HK) announced a new joint venture, Kerry Logistics
Lanka (Pvt) Ltd (‘Kerry Lanka’), formed with IAS Holdings (Pvt) Ltd in Sri
Lanka to strengthen its international freight forwarding (‘IFF’) capabilities
in South Asia.

Headquartered in Colombo, Sri Lanka, Kerry Lanka sits at the strategic
crossroads of East Asia, South and South East Asia, Africa and Europe. As part
of Kerry Logistics’ South Asia operation, Kerry Lanka operates an office in
Colombo, as well as a bonded facility and office for export purposes at the
Bandaranaike International Airport.

In 2019, 46% of the total export of Sri Lanka derived from the textiles
and garments industry, amounting to US$5.6 billion, according to the Central
Bank of Sri Lanka’s external sector performance review. There are more than 300
apparel manufacturers in Sri Lanka, which are well connected to the super
brands in Europe and the US. Kerry Logistics’ 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 entrepot services.

Patrick Cheah, Executive Director – Global Air of Kerry Logistics, said,
“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. 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.”

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.

About Kerry Logistics Network Limited (Stock Code 0636.HK)

Kerry
Logistics is an Asia-based, global 3PL with the strongest network in Asia. Its
core competency is providing highly customised solutions to multinational
corporations and international brands to enhance their supply chain efficiency,
reduce overall costs and improve response time to market. Kerry Logistics has a
network covering 55 countries and territories, and is managing 75 million sq ft
of land and logistics facilities worldwide, providing customers with high
reliability and flexibility to support their expansion and long-term growth.
Kerry Logistics Network Limited is listed on the Main Board of the Hong Kong
Stock Exchange and is a selected Member of the Hang Seng Corporate
Sustainability Index Series 2019-2020.

About IAS Holdings

IAS
Holdings is an investment company in Sri Lanka with diversified businesses
including airline GSA business and international transportation. One of its
shareholders has over 25 years of experience in the logistics industry and
supply chains.