Kerry Logistics Signs MOU with Sitthi Logistics To Develop Dry Port in Laos

HONG KONG, CHINA – Media
OutReach  – 5 April 2019 – Kerry Logistics Network Limited (‘Kerry Logistics’; Stock Code 0636.HK) announced
the signing of a memorandum of understanding between its
subsidiary, KLN (Singapore) Pte Ltd, and Laos’s Sitthi Logistics for the
establishment of a joint venture to develop a dry
port in the Vientiane Logistics Park in Laos. The signing ceremony was held
today and attended by the Deputy Prime Minister of Laos, Sonexay Siphandone, as the guest of honour. The move is part of Kerry
Logistics’ development strategy to seek accelerated growth in ASEAN by
developing an integrated Greater Mekong Region platform covering Thailand,
Cambodia, Myanmar and Laos.

 

The dry port will be situated in an area of approximately 35 hectares, to be developed in phases for the
transfer of cargoes at Vientiane, which connects the railway lines between
China and Thailand from Kunming to Bangkok. An efficient dry port is not only
expected to help attract investment to Vientiane and its surrounding areas, but
also turn the city into a major economic hub along the Belt and Road trade
routes.

 

George Yeo, Chairman of Kerry Logistics, said, “We at Kerry Logistics
are proud to play a role in the development of Laos and what will become an important
economic corridor between China and Southeast Asia. We are fortunate to have in
Sitthi Logistics a strong local partner. Together with Sitthi Logistics, we
will work hard to make the dry port project a success and an asset to the
Laotian economy.”

 

Kerry
Logistics will provide management expertise, while Sitthi Logistics will
provide local support. The facilities will allow the logistics industry to
transport goods by road and rail and create an efficient logistics system to
accommodate a range of industries and facilitate distribution along the
economic corridor between China and Thailand.

 

To enable the Laotian economy to benefit from the Kunming-Bangkok rail and
to fully utilise the plentiful resources and labour in Laos, the Lao government
is introducing economic incentives and conducive regulations for the building
of an efficient logistics centre in Vientiane.

 

In 2018, Kerry Logistics completed the Phase one of the inland port in
Mandalay and the inland port in Yangon. With stronger growth anticipated to persist in Asia, particularly in
Southeast Asia and India, Kerry Logistics will continue to leverage its
established network in Asia to take advantage of the booming intra-Asia trade
and maintain its business growth in Asia.

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 53 countries
and territories, and is managing 60 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 2017-2018.