Tuesday, January 25, 2022
Home3PL/4PLRoyal Cargo beefs up cold chain capability in anticipation of holiday demand

Royal Cargo beefs up cold chain capability in anticipation of holiday demand

Specialized logistics service provider Royal Cargo is strengthening its logistics and cold chain capabilities in preparation for the Christmas season.

The company’s more than 100 refrigerated vans are equipped to carry chilled and frozen products such as cold cuts, ice cream, and concentrated juices, which are in greater demand during the holidays. The reefer vans ensure cool and stable temperatures during transport to extend product shelf life and minimize food spoilage, a risk further exacerbated by the heavier traffic during Christmas.

Royal Cargo also continues to invest heavily in cold chain assets in order to meet the anticipated rise in demand for chilled and frozen food in the Philippines.

President and chief executive Elmer Sarmiento noted more sophisticated food choices among Filipinos, which together with the growing population, fuels demand in the food industry.

“This continuous rise in demand and the corresponding food logistics requirements present opportunities for cold chain facilities. We’ve been strengthening our in-house capability precisely to be able to provide reliable infrastructure and services for both storing and transporting foods,” he said.

To differentiate itself, Royal Cargo offers end-to-end supply chain services as opposed to just selling independent services for cold storage or just doing refrigerated deliveries. Confident of growth in the cold chain business in the next five years, the company plans to put up more cold storage facilities and add more reefer vans to ensure delivery of quality, fresh foods to supermarkets and Filipino consumers.

Besides expanding its transport network, Royal Cargo inaugurated early this year the construction of its new 15,000-pallet position cold storage facility in Bulacan to complement its existing logistics facility in Southern Luzon. The new facility, located on Plaridel Bypass Road, will have a cold storage, a dry warehouse, and a container freight station. It is expected to open mid-2018 and serve the distribution needs of Mega Manila, and Northern and Central Luzon.

“The business outlook is increasingly positive despite challenges such as traffic and port congestion and rising port costs. We will invest in more cold chain assets, particularly in the country’s highly urbanized areas to prepare for more demand,” Sarmiento added.

Aside from cold chain, Royal Cargo’s services also include international and domestic freight forwarding, warehousing and distribution, projects and heavylift, business process outsourcing, customs brokerage, liquid transportation, shipping agencies and trucking services, and logistics solutions for clinical research and development, using owned equipment and facilities.

With its head office in the Philippines, the company currently has 12 global offices spread in the United Kingdom, Germany, U.S., Singapore, Hong Kong, Vietnam, Cambodia, China, Guam, Palau, Taiwan, and Thailand. It plans to soon put up branches in Malaysia and Indonesia as well.


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