🧊 Emergent Cold LatAm raises $500M

ALSO: Lineage backs the move to -15C

December 15, 2023

Welcome back to Cube Cold News where we cover the latest developments in the cold chain industry and temperature-controlled logistics.

In today’s edition:

  • Lineage joins the “Move to -15C” coalition

  • Emergent cold LatAm raises $500M for refrigerated logistics

  • Americold partners with RSA Cold Chain and DP World

  • AIT Worldwide set to buy UK pharma forwarder Mach II Shipping

News

Lineage backs Join the Move to -15 C Lineage has publicly endorsed the "Join the Move to -15 C" initiative.

  • The initiative is also supported by major names in the logistics industry like AP Moller – Maersk, CMA CGM, Daikin, Hapag-Lloyd, Kuehne and Nagel International, and more.

  • The "Join the Move to -15 C" initiative is a significant step towards reassessing the international temperature standard of -18C for frozen food storage that was established back in the 1930s.

  • Academic research supports the positive environmental impact of raising the standard storage temperature of frozen food to -15 C.

  • This involves reevaluating and potentially adjusting the temperature standards for frozen food storage and transportation, which could lead to significant energy savings and a reduction in carbon emissions. (link)

Emergent Cold LatAm raises $500M for next phase of investment in refrigerated logistics Emergent Cold LatAm has secured $500M in equity commitments from new and existing investors, with lead investment from Stonepeak Partners LP, Lineage, and Losa Group.

  • The funding will be used for expanding the regional cold storage network, investing in technology, and ensuring high operational standards and customer service.

  • Emergent Cold LatAm, founded in August 2021, operates more than 70 cold storage facilities in 11 countries in Latin America, with continued investment in building and expanding a high-quality cold chain network.

  • The latest funding brings total equity raised since July 2021 to $1.2B, indicating a substantial growth opportunity.

  • The company plans to continue capital deployment for strategic acquisitions and new builds, expecting a good balance between the two for the foreseeable future. (link)

Americold Partners with RSA Cold Chain and DP World Americold Realty Trust, Inc., through its joint venture RSA Cold Chain in Dubai, has announced plans to build and operate a new $35M, state-of-the-art cold storage facility in the Jebel Ali Free Zone (Jafza) in the Port of Jebel Ali in Dubai.

  • The facility, with planned 40,000 pallet positions, is part of a strategic collaboration with DP World, a leading provider of worldwide smart end-to-end supply chain logistics.

  • The new facility will offer multi-temperature capabilities and connect to DP World’s logistics solutions.

  • Construction is set to start in early 2024 and is expected to be completed by Q1 of 2025.

  • This partnership aims to optimize the cold chain from production to consumption in the countries of the Gulf Cooperation Council. (link)

Asia Pacific cold storage investment to mature despite recent headwinds JLL, a global commercial real estate services company, predicts that the cumulative investment in cold storage in the Asia Pacific region will exceed $2B by 2030.

  • This forecast comes despite a recent slowdown in investment and is driven by increasing demand for cold storage facilities and investors pricing in specialized and technological considerations.

  • Cold storage facilities present a compelling long-term investment opportunity in Asia Pacific, supported by their ability to deliver resilient and stable returns and to generate higher rental rates than other asset classes.

  • A variety of factors, including structural changes in consumption patterns, the shift to online spending, and various macroeconomic influences, are expected to support the cold storage market for longer-term yet sustainable growth.

  • Asia Pacific's substantial middle-class population, rapid economic growth, and rising income levels are expected to support rising consumption levels.

  • Private consumption in Asia Pacific rose by a robust compound annual growth rate (CAGR) of 4.1% between 2013 and 2022. This is forecast to accelerate to 4.7% between 2023 and 2025. (link)

AIT Worldwide set to buy UK pharma forwarder Mach II Shipping AIT Worldwide, a fast-growing US 3PL, is set to expand in Europe with the purchase of UK pharma-focused freight forwarder Mach II Shipping.

  • The purchase will include Mach II's facilities in the UK and the Netherlands, as well as its global Pharmafreight partner network.

  • Mach II provides temperature-controlled air freight and dedicated road service for high-value life sciences moves throughout Europe with a managed fleet of temperature-controlled vehicles.

  • Mach II has facilities in the UK and the Netherlands, including a temperature-controlled warehouse in Ashford, Middlesex, and a similar facility in Nieuw-Vennep, near Amsterdam Airport Schiphol.

  • AIT plans to integrate fully with Mach II in 2024, enhancing its solutions for customers by tapping into AIT’s vast worldwide network.

  • The acquisition is expected to boost AIT’s world-class life sciences division and elevate cold chain service, especially in Europe. (link)

Other headlines

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