Logistics

New facility to tap into Myanmar’s growing specialized logistics sector

15:17 SGT December 13, 2017
New
Phee Central was set up with the support of International Enterprise (IE) Singapore, a government agency that facilitates international business and global trade

Singapore-based Phee Group has opened Phee Central, a 60,000sqf logistics centre in Myanmar, to cater to a diverse array of logistics needs from businesses in this growing market.

With an investment of US$5 million, the ISO 9001: 2015, HACCP and GMP-certified Phee Central is a multi-temperature storage facility, 25km from the Bo Aung Kyaw Wharfs (BSW), Myanmar Industrial Port (MIP) and Asia World Port Terminal (AWPT). The facility is also near to Yangon International Airport.

This is a new venture for the company, which has been providing shipping and freight forwarding services in Myanmar for some 24 years. The new Phee Central was supported by government agency International Enterprise (IE) Singapore, which promotes international trade and partners Singapore companies with their plans to go global.

Working with IE Singapore on its expansion strategy in Myanmar, Phee Group said its entry into specialized logistics solutions is timely as Myanmar’s economic reforms and rising middle class have attracted many foreign investments in various sectors of the economy, including F&B, pharmaceutical, consumer packaged goods, machinery and telecommunications equipment.

The Phee Group’s entry into specialized logistics solutions is timely as Myanmar’s economic reforms and rising middle class have attracted many foreign investments in various sectors of the economy, including F&B, pharmaceutical, consumer packaged goods, machinery and telecommunications equipment.

Myanmar now has a growing demand for specialized supply chain solutions such as temperature-controlled logistics facilities. But as local logistics infrastructure is still in nascent stage, demand for such services presents opportunities for Singapore logistics companies.

“It has always been our aspiration to provide a more extensive array of services that offers peace of mind to our clients,” said Ben Phee, chairman and group managing director of Phee Group. “With Phee Central, we are not only able to achieve this, but also able to reduce the wastage of resources and materials due to inadequate storage.

“Coupled with our temperature-controlled delivery system, we are confident in delivering highly reliable all-rounded logistics solutions for our clients.”

VALUABLE LOGISTICS FUNCTION

Phee Central will serve as a valuable logistics function with the potential to greatly optimize supply chains, said the company. Built on 3.2 acres of elevated ground with a round-the-clock security system, the facility is equipped with high-capacity backup generators to provide uninterrupted power supply. Phee also said this facility is “a first of its kind” to support a state-of-the-art column-free design that maximizes capacity and improves efficiency.

The logistics centre uses Warehouse Management System (WMS) to relay live updates of inventory status for each of its client’s warehouse activities. This data is accessible in real time via Web-enabled storage technology, ensuring both reliability and accuracy. Other value-added services include contract logistics, freight consolidation, carrier management, customs brokerage and trade compliance management.

To improve its recruitment, training and retention processes for its operations at the Phee Central warehouse, IE Singapore supported Phee Group in developing a manpower strategy. Also included in the blueprint are market attachments to help its new employees better understand the environment and the cold chain business landscape in Myanmar. Through IE Singapore’s support, Phee Group said it is able to achieve greater regional growth and expansion.

Law Chung Ming, group director of Transport & Logistics Group at IE Singapore, said: “It is important for Singapore companies to constantly transform themselves to capture opportunities in fast-growing regional markets such as Myanmar. Having been established in Myanmar for more than 20 years, Phee has built a firm understanding of the market needs, putting it in a good position to provide specialized cold chain logistics solutions. To build their business in Myanmar, we worked with the company to develop Singaporean talents with specific, customised skill sets in specialized logistics and market readiness.”

Phee Group is also looking to partner with other Singapore companies who are keen to tap into its logistics solutions, as well as share with them its insights and networks in the ASEAN market, Phee concluded.