Logistics solutions provider Royal Cargo Inc. is putting up a P1.4-billion logistics facility in Canlubang, Laguna to store dry and liquid goods and pharmaceutical products, a top executive said Thursday.
Royal Cargo chairman and chief executive Michael Reuber said the company would reinvest funds generated from revenues in Philippine operations to expand its logistics footprint and improve products and services.
“Our family-owned company Royal Cargo Inc. has invested more than $100 million in the last five years alone, and I’m mentioning that not to brag, but basically, for you to understand that all the funds which we invested were earned in the country. And a big part of the significant investment which we have done, was done in this pandemic year,” Reuber said during a webinar on foreign direct investments organized by the Nordic Chamber of Commerce of the Philippines.
The Cargo City South Hub will be built to host 10,000 pallet position for dry warehousing, 5,000 pp for temperature-controlled storage which is mainly for chilled and pharmaceutical products, a container yard and an International Standards Organization-certified facility.
RCI president Elmer Sarmiento said the over P1-billion investment would cover all expenses on land, building, refrigeration equipment and improvements.
“The facility is still under construction. We’re not yet operating. We just bought the property. We are set to operate partial dry warehouse next month, while temperature-controlled refrigeration and full operation, next year,” he said.
He said the chillers would be used to store not only COVID-19 vaccines but pharmaceutical products in general including clinical trial shipments, other vaccines and medicines.
“We offer additional capacity, new service, logistics solution to pharmaceuticals and an alternative to current service providers,” he said.
RCI also operates another facility in the north—the five-hectare Cargo City North Hub. North Hub is ready to take the expected increased demand for frozen food, said Reuber.
The P2-billion facility was built to provide continuous cold supply chain processes in anticipation of greater demand for frozen goods.
The only self-contained TCR facility in the country, the North Hub carries an extensive cold supply chain solutions portfolio that can handle the distribution requirements of chilled and frozen goods nationwide.