KLN Subsidiary Kerry Siam Seaport and POSCO Group Subsidiary Form Joint Venture to Strengthen Steel Logistics Capabilities in Thailand and Southeast Asia

Kerry Siam Seaport and POSCO Flow (Thailand) Joint Venture

Kerry Logistics Network Limited (KLN), a leading global logistics and supply chain management company, has announced that its subsidiary, Kerry Siam Seaport (KSSP), has formed a joint venture with POSCO Flow (Thailand), a subsidiary of South Korean steelmaker POSCO Group. The joint venture, named POSCO FLOW (THAILAND), aims to strengthen steel logistics capabilities in Thailand and the broader Southeast Asian region.

The joint venture will focus on providing comprehensive steel logistics services, including transportation, warehousing, and distribution, to support the growing demand for steel products in the region. By leveraging the combined strengths of KSSP and POSCO Flow, the new entity will be well-positioned to capture a significant share of the Southeast Asian steel logistics market.

KSSP, a major multi-purpose deep-sea container terminal operator in Asia, brings extensive infrastructure and expertise in logistics services to the joint venture. Its strategic location in Thailand, along with its extensive network and experience in the region, will provide a strong foundation for POSCO Flow's operations in Southeast Asia. POSCO Flow, on the other hand, offers a global network and expertise in steel logistics, enabling the joint venture to provide efficient and cost-effective solutions for steel products.

The joint venture aligns with broader trends in Southeast Asia's steel industry, such as increasing demand, infrastructure development, and regional integration. The Southeast Asian steel market is projected to grow at a CAGR of 6.20% during 2024-2032, driven by increasing infrastructure projects and construction activities. The joint venture will enable POSCO Flow to tap into this growing demand by providing efficient and cost-effective logistics solutions for steel products in the region.

The joint venture also presents opportunities for further expansion in the region. By establishing a strong presence in Thailand through the joint venture, POSCO Flow can use this as a platform to expand its services to other Southeast Asian countries, such as Vietnam, Indonesia, and Malaysia. This expansion can be facilitated by the region's growing demand for steel products and the need for efficient logistics solutions.

Insert a chart showing the projected growth of Southeast Asia's steel market from 2024 to 2032

The joint venture between KSSP and POSCO Flow is expected to have a significant impact on the steel logistics landscape in Thailand and Southeast Asia. By combining KSSP's extensive infrastructure and logistics expertise with POSCO Flow's global network and steel logistics experience, the joint venture will be well-positioned to capture a significant share of the regional steel logistics market. This partnership is expected to drive growth and innovation in the region's steel supply chain, enhancing connectivity, improving service quality, reducing costs, and expanding market access.