Integrated supply chain provider, APL Logistics, has said it plans to establish a regional consolidation hub for South Asia in Sri Lanka by the second half of 2015. It will support APL Logistics’ existing cargo hubs in North and Southeast Asia and connect with as many as 18 container freight stations in APL Logistics’ South Asia network, according to the company.
The hub will be based in the Katunayake Export Processing Zone following the signing of an agreement last month with the Board of Investment of Sri Lanka. A division of the company called APL Logistics Lanka will operate container freight stations and warehousing, beginning with the development of 10,000 sq.m of bonded warehousing space,
“Sri Lanka has been rapidly growing in importance as a regional sourcing base for global retail customers,” said Beat Simon, APL Logistics president. “The country’s infrastructure development to improve the capacity and efficiency of its existing ports has been progressing at a tremendous pace. With the set-up of APL Logistics’ regional consolidation hub here, we are well-positioned to scale up our operations and meet growing customer demand for reliable regional supply chain solutions in South Asia.”
A third of APL Logistics business is dedicated to the automotive industry and it counts some of the world’s biggest carmakers and tier ones amongst its customers, including Ford, GM, Renault-Nissan, Toyota, American Axle and Lear. The company provides services from managing the inbound flow of parts and materials into assembly plants, to the distribution of finished vehicles. It also provides services for aftermarket parts movements.