Singapore-listed Singapore Myanmar Investco Limited (SMI) has entered into a joint venture agreement with Japanese logistics group Senko Co Ltd to provide logistics and warehousing services in Myanmar.
The firms will incorporate and operate a Singapore company, SMI-SENKO Logistics Pte Ltd, for this purpose, SMI said in a Singapore Stock Exchange (SGX) filing.
According to the agreement, SMI and SENKO will each subscribe for 650,000 new ordinary shares of $1.00 in the new joint venture entity, and hold 50 percent of the issued and paid-up capital.
The joint venture company will have an initial paid-up capital of $1.3 million, SMI said.
According to the Logistics Performance Index (LPI) by the World Bank, Myanmar is ranked 145 out of 160 in 2014. However, the strong economic growth outlook and further easing of sanctions will likely fuel the growth and development of Myanmar’s logistics sector.
Many international logistics and warehousing players have recently set up shop in the previously-shunned country.
“Combining SMI’s local knowledge and support network with Senko’s logistics experience, SMI-SENKO will have a strong business foundation with a strategic focus on providing integrated logistics and warehousing services to a growing base of domestic and international customers from various industries,” the SGX filing said.
Mark Bedingham, president and chief executive officer of SMI, said: “As SMI continues to expand its business presence in Myanmar, we are excited to have a world class logistics firm like Senko as a strategic partner.
“Leveraging on the strengths of both organisations, we can provide a compelling platform to deliver world-class logistics solutions in Myanmar.”
