Gokongwei Group enters logistics with P60 million DHL venture

ABS-CBN News

Posted at Dec 10 2019 10:28 AM | Updated as of Dec 10 2019 10:54 AM

A truck is seen at a new DHL/Deutsche Post parcel center in Bochum, Germany, Nov. 18, 2019. Leon Kuegeler, Reuters

MANILA -- The Gokongwei group said Tuesday it was diversifying into logistics, forming a joint venture with DHL and ACCRAIN Holdings with a P60 million investment.

The new company, DHL Summit Solutions Inc, will provide domestic transportation, logistics, warehousing, cargo distribution and other supply chain management activities, JG Summit told the stock exchange.

The new company will start operations in June 2020, JG Summit said.

With the Philippine economy expected to grow 6 percent each year, "businesses will need to invest in world-class logistics and warehousing services to stay ahead of the competition," said JG Summit President Lance Gokongwei.

JG Summit also controls the Philippines' largest airline, Cebu Pacific, which recently entered the full cargo market.

The holding firm of the late industrialist John Gokongwei joins other conglomerates in betting on the logistics space, as a growing economy fuels demand for cargo. SM Investments in 2017 acquired a stake in 2Go.