Slowing retail sales, especially in the luxury sector, are having a negative impact on one of Hong Kong’s top logistics providers.
Kerry Logistics Network Ltd. (00636.HK) said it is shifting to the mass market as some of its clients turn to other Asian hubs, executive director Samuel Lau Kin-pu said.
Lau told the Hong Kong Economic Journal that the company is finalizing plans to build more cold storage facilities to tap growing demand in the food and beverage sector.
These include retrofitting its traditional warehouses and folding them into its cold logistics business.
Also, it will take part in a Tuen Mun land auction, set for later this year, as part of plans to build more warehouses.
Lau said rental costs are unlikely to ease anytime soon amid limited supply of storage space.
The company is pressing on in China after winning a forwarding license last year and looking to establish cross-border logistics between the mainland and countries in Southeast Asia.
It is seeking mergers and acquisitions to complement organic growth in Asia Pacific and around the world, Lau said.
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