Cebu-based integrated logistics firm Fast Group is spending P2 billion over the next two years in expanding its footprint in cold chain nationwide.
William Chiongbian II, Group president and chief executive officer of Fast Group, in a press conference yesterday said the company invested P500 million for the first two
temperature-controlled logistics facilities under Fresh by FAST, one in Cebu and another in Cavite, done under a partnership scheme.
Chiongbian said the plan is to put one or two more in Luzon, two in Mindanao and one each in Eastern and Western Visayas.
He said this will bring the capacity of Fresh by FAST to 100,000 pallet positions, more than triple than the 30,000 pallet positions it currently. Cold chain now contributes 12 percent to the Group’s business.
Chiongbian said the company intends to tap a combination of equity and debt to fund the expansion.
He said the company is also eyeing an initial public offering in the future.
The Group has been serving the cold storage requirements of some of companies in ice cream, fast food chain, and pharmaceuticals over the last 10 years.
“We have built quite an extensive footprint in mega distribution centers, warehouses, and logistics hubs, and it was about time that we looked at investing in specialized logistics,” Chiongbian said.
The Group chose Cebu, where the business started, for FAST Coldchain Hub in North Cebu, an integrated facility with more than 10,000 pallet positions. In July, the company also launched FAST Cold Chain Hub Cavite, serving the Luzon cold chain requirements.
This is an expansion to its warehouse management footprint of more than 1.2 million square meters for dry storage.
