Kerry Logistics and POSCO Group Join Forces to Strengthen Steel Logistics in Southeast Asia
In a strategic move aimed at bolstering the logistics capabilities of the steel sector in Southeast Asia, Kerry Logistics Network (KLN) and POSCO Group’s logistics arm, POSCO Flow, have entered into a joint venture, POSCO Flow (Thailand), through Kerry Siam Seaport, a subsidiary of KLN based in Thailand. This partnership will enable the two companies to provide enhanced logistics support for POSCO Group’s subsidiaries across Thailand and the broader Southeast Asian market. The collaboration is set to further cement their combined expertise in handling the logistics needs of the steel industry in one of the most dynamic regions of the world.
KLN has had a long-standing relationship with POSCO Group, providing port and logistics services since 2017. The new joint venture, POSCO Flow (Thailand), takes this partnership to the next level, enabling the companies to deliver a more comprehensive suite of services. These services include port operations, warehousing, transportation, customs clearance, stuffing and unstuffing, stevedoring, and container freight. This wide array of services positions POSCO Flow (Thailand) as a key player in the region’s steel logistics sector.
A Milestone Collaboration in Steel Logistics
The partnership between KLN and POSCO Group is not just a tactical business move, it is a long-term collaboration that leverages the strengths of both companies to enhance the logistics infrastructure in Southeast Asia. POSCO, a Fortune 500 company, operates production facilities across 16 countries and has a strong foothold in the global steel industry. The joint venture is set to provide enhanced steel logistics capabilities that will support POSCO Group’s extensive network in Southeast Asia, laying the groundwork for the region to become a hub for efficient and cost-effective steel logistics.
Ellis Cheng, the Executive Director and Chief Financial Officer of KLN, expressed excitement about the venture, calling it a "milestone" in the ongoing partnership between KLN and POSCO Group. Cheng highlighted the importance of the joint venture in supporting POSCO Group’s expansion into Thailand’s logistics market. He further noted that the collaboration would enable both companies to enhance their service capabilities, setting new benchmarks for industrial logistics across Southeast Asia and globally. This venture underscores KLN’s solid presence in the region and its proven track record of excellence in logistics management.
Strengthening Steel Logistics Capabilities
POSCO Flow, which serves as the logistics arm of POSCO Group, has built a reputation for offering comprehensive logistics solutions to steelmakers globally. With its expansion into Thailand, POSCO Flow is set to provide steel logistics solutions that cater specifically to the needs of the steel industry in Southeast Asia. The joint venture, POSCO Flow (Thailand), aims to deliver the best logistics solutions to companies within the POSCO Group and other steel industry players in the region. This will not only enhance the operational efficiency of POSCO Group’s subsidiaries but also contribute to cost competitiveness in a highly competitive steel market.
Ha Jong-beom, Head of Steel Logistics at POSCO Flow, emphasized that the joint venture would provide POSCO Group with a competitive advantage in the steel logistics market in Thailand. He added that the partnership would lay the foundation for future expansion into the Southeast Asian market, allowing POSCO Flow (Thailand) to offer high-quality logistics solutions while driving cost-efficiency for all stakeholders.
The Strategic Importance of the Southeast Asian Market
Southeast Asia is home to one of the fastest-growing economies in the world, with its steel sector playing a pivotal role in the construction, infrastructure, and manufacturing industries. Steel is a key component in these sectors, and efficient logistics are crucial to maintaining a smooth and cost-effective supply chain. The establishment of POSCO Flow (Thailand) highlights the importance of regional logistics infrastructure in supporting the growth and expansion of the steel industry in Southeast Asia.
Kerry Siam Seaport, which has been serving POSCO Group since 2017, brings decades of experience in the logistics sector. The facility’s strategic location in Thailand provides an ideal hub for moving steel products throughout Southeast Asia, facilitating the import and export of steel products and raw materials. By enhancing its logistics operations through this joint venture, both KLN and POSCO Group aim to improve the delivery and handling of steel products, meeting the increasing demand for efficient and cost-effective logistics solutions in the region.
Future Implications for Southeast Asian Steel Logistics
The collaboration between KLN and POSCO Group is expected to yield significant benefits for the regional logistics market. With the establishment of POSCO Flow (Thailand), both companies are positioning themselves as leaders in steel logistics, offering enhanced capabilities and innovative solutions for steel manufacturers in Southeast Asia. As the steel market continues to grow, logistics solutions will play a critical role in driving supply chain efficiency and reducing costs.
This joint venture is expected to have a positive impact on the regional economy by creating new opportunities for logistics providers, port operators, and steel producers. As the steel industry becomes increasingly competitive, the ability to offer cost-effective and reliable logistics services will be a key differentiator for companies seeking to expand their footprint in Southeast Asia.
A Blueprint for Future Collaboration
The partnership between Kerry Logistics and POSCO Group is not only a game-changer for the steel logistics industry in Southeast Asia but also a blueprint for future collaborations in other regions. With both companies bringing their expertise to the table, this joint venture is poised to make a lasting impact on the logistics landscape, setting new standards for efficiency, service quality, and cost competitiveness in the steel sector.
Key Takeaways:
• New Joint Venture: Kerry Logistics Network (KLN) has formed a joint venture with POSCO Group's logistics arm, POSCO Flow, to enhance steel logistics capabilities in Southeast Asia.
• Services Offered: The partnership will provide comprehensive logistics services including port operations, warehousing, transportation, customs clearance, and more for POSCO Group’s subsidiaries in Thailand and Southeast Asia.
• Strategic Importance: The joint venture strengthens KLN and POSCO Flow’s ability to serve the growing steel industry in Southeast Asia, improving efficiency and cost-competitiveness.
• POSCO Group’s Global Reach: POSCO Group, a leading global steelmaker, operates in 16 countries and aims to leverage the joint venture to further expand its presence in Southeast Asia.
• Southeast Asia’s Growing Market: The venture comes as Southeast Asia’s steel industry continues to grow, with the demand for efficient logistics solutions increasing.
• Long-Term Collaboration: The joint venture marks a milestone in the long-term partnership between KLN and POSCO Group, with plans for future expansion beyond Thailand.
• Enhanced Logistics: The collaboration is set to improve steel logistics services in Southeast Asia, offering more competitive pricing and higher-quality solutions for steel manufacturers in the region.
