TASCO Berhad, the Malaysian subsidiary of Japanese logistics provider, Yusen Logistics, has reached agreements to acquire two cold chain logistics providers in Malaysia, Gold Cold Transport Sdn Bhd (GCT) and MILS Cold Chain Logistics Sdn Bhd (MCCL).
The acquisitions, which are subject to regulatory approval and expected to be completed by the end of June, will enable Tasco to make a full-scale entry into the country's cold chain logistics
segment to support growth and business expansion by combining ocean and air cargo transport with contract logistics.
The company said that demand for refrigerated transportation and cold storage facilities for perishable products, such as fresh produce, beverages and pharmaceuticals, is rising as a result of population growth and increased personal consumption throughout the ASEAN region. Moreover, due to anticipated growth of online shopping, increased demand for scheduled deliveries using reefer trucks is also anticipated, Tasco said.
Yusen adds large warehouse capacity to its empire
According to Yusen, GCT is one of the largest cold chain logistics providers in Malaysia. It has 174 reefer trucks and a warehouse storage capacity of about 31,000 sq m, primarily handling frozen and chilled foods.
The second acquisition, MCCL, is the tenth largest cold chain logistics provider in Malaysia. It operates chilled and frozen warehouses (about 7,000 sq m) in the area adjacent to Westport of Port Klang.
To meet the expected rise in increased container handling at Westport, Tasco concluded an agreement to purchase land (around 160,000 sq m) and ambient warehouses (around 31,000 sq m) in the area in addition to the purchase of MCCL.
Yusen Logistics acquired Tasco in 2015.
Nol van Fenema