Kerry, Asia’s Logistics Leader, Expands Its SL Operations | Daily FT

Alan Yip, Managing Director of Kerry Logistics Network, South and Southeast Asia, and Managing Director of Operations and Technology, during an interview in Colombo

– Photo by Lasantha Kumara

• With JV partner IAS Holdings, plans are underway to build a 100,000-square-foot warehouse to meet growing demand and complement the existing 250,000-square-foot facility
• Kerry Logistics Network Managing Director, South and Southeast Asia Alan Yip says Sri Lanka is a very good hub for logistics and sees great potential
• Says Kerry Logistics is here to stay for the long haul and expansion plans are testament
• Initiates multi-country consolidation program involving cargo of less than one container using Sri Lanka as hub
• Advocates for further strengthening of the competitiveness and efficiency of SL to maintain and grow the status of center
• Present in 59 countries, Kerry Logistics is part of the famous Kuok Group, owner of Shangri-La.
• Hotels and Resorts

by Nisthar Cassim

Asia’s top logistics service provider Kerry is optimistic about Sri Lanka’s prospects as a hub in South Asia, prompting it to expand its operations in the country.

Alan Yip, Managing Director of Kerry Logistics Network, South and Southeast Asia and Managing Director of Operations and Technology, was in Sri Lanka recently to strategize future plans and meet with customers and employees.

“Sri Lanka is a very good logistics hub and we see great potential for expansion. We are currently looking for land to build a 100,000+ square foot warehouse to serve the growing demand. The new facility will complement part of our existing storage business,” Yip told the Daily FT in an interview.

Today, Kerry Sri Lanka controls over 250,000 square feet of storage facilities and operates as a full-fledged logistics operator.

The Asia-based global 3PL player has operations in 59 countries and territories with local expertise spanning mainland China, India, Southeast Asia, the CIS, the Middle East, Latin America and beyond. It offers a wide range of supply chain solutions, from integrated logistics, international freight forwarding (air, sea, land, rail and multimodal), e-commerce and express to industrial project logistics and infrastructure investment.

In 2022 it achieved a turnover of 11,000 million dollars and has more than 43,000 employees. The Company has experienced rapid growth compared to operations in 19 countries with 19,000 employees a decade ago.

Kerry Logistics’ confidence in future potential led it to invest in Sri Lanka in a joint venture with IAS Holdings Ltd., in 2020, rather than through an agency agreement. The IAS Holdings team includes industry specialists Tania Polonnowita Wettimuny, Entrepreneur and Group CEO, and Jagath Pathirana, Group Director.

Yip’s first visit to Sri Lanka was to provide support and strategic alignments with regional development along with South East Asia. Kerry Logistics is a member of the famous Kuok Group, which owns Shangri-La Hotels and Resorts and SF Express, the largest express operator in China.

Kerry Logistics recently started a Multi Country Consolidation (MCC) program involving Less Than Container Load (LCL) using Sri Lanka as a hub.

From Kerry Logistics’ perspective, “we are here to stay for the long term and our expansion plans are a testimonial,” Yip emphasized.

The program offers weekly direct LCL services from Asia’s major gateways to multiple country destinations around the world. The new offerings will leverage Kerry’s presence and extensive ground support in Asia to provide customers with increased profitability and dedicated customer support from Container Freight Station (CFS) to CFS for loads of any size. With new weekly scheduled LCL services suitable for all industries, KLN serves more than 2,800 brokers worldwide.

Yip also welcomed Sri Lanka’s major developments such as the port city of Colombo, as well as the government’s efforts to provide stability and stimulate growth through a program with the International Monetary Fund (IMF) and reforms. He also stressed that Sri Lanka’s neutrality and strategic location in the Indian Ocean bodes well for the future.

Yip opined that Sri Lanka by further strengthening its competitiveness, including infrastructure and efficiencies, will help maintain and grow the status of the hub. He praised Sri Lanka’s management experience and talent pool, especially with IAS Holdings. This, he said, was a key reason for Kerry Logistics’ growth in Sri Lanka along with specialized in-house cargo management system with advanced security features. Kerry Logistics Lanka is led by Michael Van Dort in his Vice President capacity with a team of experienced, young and energetic professionals.

Acknowledging the fact that the country has been through its biggest crisis, Yip said the message to Sri Lankan customers was that as long as they remain positive, opportunities will follow.

“As leaders, even in the most difficult situation, you must think about the best outcome and guide people to where they need to be. The combined task by the team will give a better result than individual efforts,” she added.