SCGJWD Logistics Public Company Limited (SJWD) announces the Company’s 2024 Business Plan, laying down detailed strategies for expansion and regional logistical network covering land, sea and air, in the bid to expand the freight forwarder business following the acquisition of shares in “SINO”, “ANI” and “Swift” along with the preparations to invest in “SCG Inter Vietnam” to secure revenue from the provision of integrated logistics services to petrochemical projects. The Company is also all set to focus on increasing potential and upgrading the cold chain and automative businesses, and create opportunities from new businesses, such as Built-to-Suit warehouses, logistics services for the healthcare and pharmaceutical industry and storage space for rent business. In addition, a goal has been put in place to become a Net-Zero Carbon organization in 2050 to ensure sustainable business operations.

Mr. Bunn Kasemsup, Co-Chief Executive Officer of SCGJWD Logistics Public Company Limited (SJWD), ASEAN’s biggest logistics and supply chain service provider, revealed that, the overall scenario of the logistics and supply chain industry in 2024 of the five main ASEAN countries, namely, Thailand, Indonesia, Vietnam, Philippines and Malaysia shows the tendency to grow significantly, as reflected in the overall economy of the five countries as named above, which has been projected to grow by 4.2 percent this year on average. This forecast supports the Company’s strategy to aggressively expand freight forwarder business and to grow in the ASEAN region. In order to achieve the goals, SJWD has formulated three main strategies for the year 2024: (1) Broadening regional connectivity and expansion. (2) Strengthening and scaling up cold chain and automative business, and (3) Creating new business opportunities with this year’s total investment budget of more than 4.6 billion baht to generate revenue growth of 12 percent over last year’s total revenue of 23.979 billion baht and set a long-term goal to increase the market capitalization to 100 billion baht within 2027.

Strategy No.1: “Regional Connectivity & Expansion” – SJWD aims to increase the proportion of profits from operations abroad to 40 percent in 2027, as from last year until the present. The Company has expanded investment in the sea freight forwarding and air freight forwarding businesses, and has invested in one of Malaysia’s major logistics and supply chain service companies to increase the potential of providing seamless transportation services in many forms, covering land, sea and air in the ASEAN region and China. These are: (1) The acquisition of a 4.2-percent stake in Sino Logistics Corporation Public Company Limited (SINO), a major integrated international logistics service provider. In 2023, SINO had a total freight volume on all routes of 46,985 containers, and ranked No.1 in Thailand and No.6 in the world with the highest volume of sea freight transport on the Thailand-USA route.

(2) Increased shareholding proportion in Asia Network International Public Company Limited (ANI), to 20.12 percent. ANI is a Top-3 major operators in Asia as the general sales agent (GSA) for more than 20 airlines, covering eight countries, namely, Thailand, Singapore, Malaysia, Vietnam, Cambodia, Myanmar, China and Hong Kong, with more than 20 percent’s market share last year. The company also has plans to expand the service network in other regions such as Europe, Australia, etc. SJWD expects to realize a share of profits from ANI of approximately 185 million baht this year, and

(3) The acquisition of a 20.44-percent share in Swift Haulage Company Berhad (Swift), a major integrated logistics service provider listed on the Malaysian Stock Exchange specializing in road transport, and is Malaysia’s largest tractor-truck transport service provider. This acquisition will help increase the potential of providing cross-border freight services on the Thailand–Malaysia–Singapore route for SJWD. It is expected that the Company will receive a share of profits from the investment in Swift of approximately 55 million baht this year. These three companies, as above, had a combined revenue last year of more than 10 billion baht in 2023.

As for the investment plan further down the road, the Company is preparing to acquire 100 percent shares in SCG Inter Vietnam Company Limited (SCG Inter Vietnam) from SCG International Company Limited. SCG Inter Vietnam is a logistics service provider for Long Son Petrochemicals, Vietnam’s first integrated petrochemical project in Vietnam belonging to SCG Chemicals Public Company Limited, within the second quarter of 2024.

Mr. Charvanin Bunditkitsada, Co-Chief Executive Officer of SJWD, said that for SJWD’s Strategy No.2: “Strengthen & Scale Up Cold Chain & Automative”, the Company will mobilize its strengths in the end-to-end, fully-integrated “cold storage warehouse” service capabilities and the country-wide logistics services for pharmaceutical products in order to expand the market to generate 10-percent increase in revenue from last year. Currently, there are six cold storage warehouses available for service in Samut Sakhon, Bangna-Trad kilometers 17, 19, 22, Suwinthawong and Saraburi. These warehouses can accommodate a total of 135,000 tons of goods, with an average space occupancy rate of 74 percent. The plan is to expand the cold storage capacity at five locations to support another 34,000 tons of products. The expansions will be at: (1) Two DC cold storage warehouses in the Rangsit area, to support 23,000 tons of products; (2) Chiang Mai branch for an additional 1,500 tons of products; (3) Khon Kaen branch for an additional 1,500 tons of products; and (4) Saraburi Cold Storage Phase 2 that can receive an additional 8,000 tons of products. Also included is the FUZE POST network that provides express temperature-controlled product delivery services to meet the B2B2C market demand.

Meanwhile, the “automotive yard and management service” is targeting revenue growth of 10 percent this year, in line with the burgeoning electric car (EV) market that is tremendously gaining in popularity. This is reflected in the January 2023-January 2024 statistics, which shows the importations and registrations of electric cars in Thailand totaling 63,250 vehicles. Currently, the Company is a major logistics service provider for electric vehicles (EV) and internal combustion engine (ICE) vehicles in Thailand, occupying a market share of approximately 30-35 percent. The Company’s total service areas cover more than 870,000 square meters, divided into 400,000 square meters service areas within the Company’s facilities, and more than 472,000 square meters of on-site service areas on the customers’ premises. The Company is fully ready to bring its expertise and knowledge from providing end-to-end solution services for imported electric cars for sale, and automotive spare parts. In addition, a plan is in the pipeline to introduce the vehicle storage and management service model in Vietnam.

Strategy No.3: “New Business Opportunities” – SJWD’s focus will be on three businesses: (1) The warehouse business on the “Built-to-Suit” model as constructed in accordance with the needs of the tenants under Alpha Industrial Solution Company Limited, which is a joint venture between SJWD and Origin Property Public Company Limited. Currently, there are projects that have been launched and are under development in nine locations, representing a total of more than 500,000 square meters of warehouse space for rent. There are also plans to register the warehouses under the REIT fund this year.

(2) Another focus is on the expansion of the logistics services for the healthcare and pharmaceutical industries that have high growth potential, with the preparation to accommodate this business sector with more than 28,000 square meters of warehouse space in the Bangna Km.22 area. The Company will collaborate with leading partners in the medical device and pharmaceutical industry, as well as building on the Company’s expertise and experience in cold storage warehouse services. This business is expected to generate about 70 million baht in revenue for the Company this year.

(3) The Company’s 2024 revenue target to be realized from the “MeSpace Self Storage”  business is 70 million baht, or a growth of 53 percent from last year. This gain will be derived from the capability as the No.1 leader in the storage space for rent business, with 10 branches in Siam Square, Latprao, Rama 9, Srikreetha, Pattaya, Phuket, etc., The total space of 30,000 square meters is currently the largest in Thailand, while the company’s flexibility allows it to respond to the differing lifestyles of modern consumers who want to rent additional storage spaces. MeSpace Self Storage has a strong partner in Central Pattana Public Company Limited (CPN) that will help to grow the business well into the future.

Mr. Bunn added that the Company had a policy to conduct the business in a sustainable manner. The corporate goal is to reduce Scope 1 and Scope 2 carbon emissions by 10 percent this year with the aim for Net Zero Carbon in 2050. The main activities that are aimed to help reduce carbon emissions in 2024 include: (1) Multi-ModalTransportation, or continuous transportation of goods in a combination of forms, such as road, rail and seaborne. (2) Backhaul Matching, or managing the cargo trucks’ return trips from initial destinations. (3) Alternative fuel transport vehicles, at present, more trucks running on fuel oil are being replaced with trucks running on alternative fuels. (4) Producing electricity from solar energy, by installing rooftop solar panels at warehouse buildings. (5) Automatic Storage Technology (ASRS) have been used in cold storage warehouses since 2019. The technology can reduce electricity usage while also reducing the number of forklifts in the warehouse. The plan for 2025-2027 calls for the participation in international organizations that are active on GHG issues in the logistics industry, such as Smart Freight Center, and the Global Logistics Emissions Council (GLEC). Also, the application for the Corporate Sustainability Assessment (CSA), and to become a member of S&P Global as well as to be assessed for the Dow Jones Sustainability Indices (DJSI) specifically for the Transport and Transport Infrastructure industry group. These proactive processes are aimed at driving sustainable businesses of SCGJWD.