Kerry Logistics has formed a joined venture with Sri Lanka-based IAS Holdings to increase its global freight forwarding capabilities in South Asia.
The joint venture, dubbed Kerry Logistics Lanka (Kerry Lanka), is headquartered in Colombo, Sri Lanka — conveniently located to act as a crossroads between East Asia, South and South East Asia, Africa and Europe.
In addition to its head office, Kerry Lanka also operates an office and warehouse at Bandaranaike International Airport.
Sri Lanka is a large export of textiles: according to the Central Bank of Sri Lanka’s external sector performance review, 46% of Sri Lanka’s total exports derived from the garments industry in 2019, amounting to $5.6bn.
There are more than 300 apparel manufacturers in Sri Lanka, which are well connected to the major brands in Europe and the US. Thus, Kerry Logistics’ expansion to Sri Lanka will enable it to tap into opportunities in the sector.
Patrick Cheah, executive director of global air of Kerry Logistics, commented: “Located in Sri Lanka, the intersection of freight routes in South Asia, Kerry Lanka will become a significant hub for Kerry Logistics and give a strong boost to our global connectivity.
“Plans are also in place to aggressively focus on the upstream of the supply chain to support the fashion industry vertical.
“The forming of the joint venture also marks the deepening of our presence in the South Asian subcontinent, rounding out our full suite of services in the region.”
Kerry Logistics has also established a subsidiary in Pakistan in 2018 to extend its footprint in the Indian subcontinent. This new subsidiary is in addition to Kerry Indev Logistics in India, which was established in 1984.