Ayala Land Logistics Holdings Corp. (ALLHC) is betting on the exponential growth of the cold storage market in the Philippines in expanding its chain to serve food growers of Northern Luzon.
Jose Emmanuel Jalandoni, ALLHC president, said the company is looking at the potential of a “quadruple growth” in the business given the lack of cold storage infrastructure in the country.
“Essentially, demand is quite high from institutional users, supermarkets, convenience store restaurants, food manufacturers. If you look at the Philippines in terms of per capita capacity, we’re only at 0.04 cubic meters versus Vietnam’s of 0.17 (cubic meters),” said Jalandoni in a presentation at the Philippine Stock Exchange’s PSE Strengthening and Reach (PSE STAR): Investor Day on Wednesday.
“In Asia, if we just follow what happened to Vietnam, the cold storage business can quadruple in the Philippines. That just shows you how underserved this market segment is. We think this is a space that will grow,” he added.
ALLHC through its cold storage business ALogis Artico has 10,000 pallets capacity in its three facilities: two in Binan, Laguna and one in the recently opened one in Mandaue, Cebu.
It is also looking to put up a facility in Batangas and in Pampanga, the latter aimed at servicing food growers as far as Baguio for vegetables and Nueva Ecija for rice and other crops.
