GAC is looking to expand in the Asia Pacific

Dubai-based giant GAC is tapping into the growing contract logistics business potential of the Asia Pacific, Indian Subcontinent and Middle East, with plans to further develop and expand its operations in the regions.

Lars Bergstrom, GAC's group vice president for the Asia Pacific & Indian Subcontinent, shared his vision at a leaders' session in Colombo, Sri Lanka, to chart GAC's strategy to increase its share of the business in their regions. They discussed growing demand as a result of the rise of e-commerce, last mile deliveries and technological advancements, as well as the challenges the contract logistics sector faces.

"Many FMCG, retail and pharmaceutical companies have their manufacturing plants in this part of the world for the comparatively lower production costs, and to be closer to their customers," says Bergstrom. "China is the largest market for contract logistics in this region. The contract logistics market in Southeast Asian countries like Vietnam, Thailand, Malaysia and Indonesia has also become increasingly vibrant, and ongoing US-China trade tension has made such countries an attractive alternative manufacturing base to China."

He is optimistic about the contract logistics outlook for the Asia Pacific and the Middle East, citing forecast growth of 6% in 2019 and 2020 for East Asia and the Pacific - double the global economic growth rate of 3%. With robust economic growth, contract logistics activities are expected to increase.

GAC operates warehouses and fulfillment centres in Dubai, Qatar, Bahrain, Indonesia, Malaysia, Singapore, Sri Lanka and Thailand, with a combined storage space of more than 450,000 sqm and over 300,000 pallet positions.