🧊 Emergent Cold LatAm's 2024 Vision

ALSO: Leadership updates at Americold Realty Trust

January 12, 2024

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:

  • 2024 cold chain trends by Emergent Cold LatAm

  • Daiwa House Logistics Trust expand into Vietnam

  • Leadership updates at Americold

  • Is your cold chain efficient? Best practices for chemical and perishable goods

News

Cold chain: key trends in 2024 for food storage by Emergent Cold LatAm As the logistics and refrigerated food storage landscape continues to evolve in Latin America, 2024 is expected to bring several key trends and transformations.

  • Normalization of Stocks and Return to Pre-pandemic Levels Companies in the food sector are balancing stock levels and moving towards stability, ensuring predictability and reliability in the supply chain.

  • Sustainability: An Integral Approach Discussions about sustainability in the cold chain now include changes in refrigerated storage temperatures, energy-efficient refrigeration systems, and efforts to reduce water consumption.

  • Using Artificial Intelligence (AI) AI in supply chain management revolutionizes operations with predictive insights, dynamic space optimization, and improved safety and efficiency. AI also reduces direct and indirect labor costs, enhances predictive maintenance, and improves safety measures in cold storage operations.

  • Integration: A Demand for Comprehensive Solutions Customers seek connected cold storage solutions with data integration and visibility, including Electronic Data Interchange (EDI) and Enterprise Resource Planning (ERP) systems.

  • Facilities Close to the Food Industry There is a growing demand for comprehensive cold storage solutions, particularly in Mexico and Central American countries, due to the relocation of food production plants.

  • Automation to Meet Urban Demands Urbanization drives the need for sophisticated order selection and storage systems, emphasizing the essentiality of investment in automated warehouses in densely populated areas.

  • Adapting to Market Demands Responding with automated solutions and strategically building warehouses in locations that meet demand. Investing in new facilities and modernizing existing ones to adhere to high standards such as HACCP.

  • Outsourcing Trend in Latin America Growing trend to outsource warehousing needs, especially in Latin America. Companies realizing the benefits of comprehensive cold chain solutions and specialized knowledge.

  • Emergent Cold's Commitment to Innovation Emergent Cold LatAm is at the forefront of these changes, adapting its strategies and operations to meet the evolving needs of the industry. (link)

Daiwa House Logistics Trust expands beyond Japan with buy of Vietnam cold chain asset Daiwa House Logistics Trust, a Singapore Exchange (SGX)-listed REIT, is expanding beyond its home market of Japan by acquiring a newly built warehouse near Ho Chi Minh City, Vietnam.

  • The warehouse, known as D Project Tan Duc 2, is located in Long An province and was purchased from a unit of Daiwa House for VND 483 billion ($20M), approximately 3% below the average independent valuation for the property.

  • This acquisition marks a landmark transaction for Daiwa House Logistics Trust as it is their first property outside of Japan.

  • The property is strategically located in a gateway province that connects Ho Chi Minh City, a key economic center, to the Mekong Delta region, an important aquaculture hub.

  • The acquisition is expected to be completed by the second quarter of 2024.

  • Following the acquisition, the Long An warehouse will account for approximately 3.1% of the trust’s portfolio, which will then consist of 17 assets appraised at around JPY 90 trillion.

  • Daiwa House has made a series of investments in Vietnam in the past few years, including the acquisition of a 2,000-unit condominium project in Binh Duong province and the acquisition of Singapore-based cold chain logistics firm Storbest Holdings to expand its industrial business in ASEAN. (link)

Americold announces leadership updates Americold Realty Trust has announced the appointment of Jay Wells as its new Chief Financial Officer (CFO).

  • Jay Wells expressed his honour to join Americold as CFO and his eagerness to work with the team to strengthen Americold’s financial foundation and position the business for future success.

  • Americold's CEO, Mr. Chappelle, welcomed Jay Wells, highlighting his results-oriented approach, strategic mindset, and experience in prudent capital management. He expressed confidence that Wells is the right fit for Americold as they continue to pursue their disciplined growth strategy.

  • In addition to the CFO appointment, Americold announced a realignment of its executive leadership team to establish further ownership of financial performance across geographies.

  • Both Mr. Chambers and Mr. Winnall, part of the executive leadership team, will continue to report directly to Mr. Chappelle.

  • Mr. Chappelle concluded that these changes to their leadership structure reflect Americold's continued international expansion and will allow their team to more effectively implement strategic initiatives and take control of business performance across their markets. (link)

Other headlines

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