Thailand to have its first ‘world-class logistics campus’

Largest facility of its kind for shopping giant Central Retail

Thai shopping giant Central Retail Group has signed a 15-year lease agreement with Frasers Property Industrial (Thailand) Company Limited to develop an omnichannel distribution centre.

The 75,000-square-metre Build-to-Suit project is in Frasers’ Property Logistics Centre in the Bangplee district of Bangkok. The facility, being hailed Thailand’s first “world-class logistics campus”, is strategically located next to the over-30,000-sqm distribution centre for Power Buy, one of many companies affiliated with Central Retail.

The facility is also the largest logistics campus in Thailand for Central Retail. “To invest in such an advanced omnichannel distribution center is one of the key elements in delivering services that creates better customer satisfaction,” said Piyapong Thanyasrisung, chief operating officer at Central Department Store.

The announcement comes as Central Retail posts strong growth in omnichannel contributions to fashion, hardline and food sales: up by 104 percent, 50 percent, and 26 percent, respectively, in the three months to March 2019.

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“The project is considered a flagship project that will transform warehousing development in the logistics industry,” says Sopon Racharaksa, president of Frasers Property Thailand.

The omnichannel distribution center will allow Central Retail to implement cutting-edge operational technologies such as e-ordering, Automated Storage and Retrieval Systems (ASRS), and Automation Voice-Picking system.

The campus also has solar rooftop installations and other environment-friendly features in a bid to meet LEED standards.

The project is expected to generate more than 1,000 jobs in Bangplee area.