Silver Ridge Resources: Singapore’s premier mail carrier is to spend $145 million on a new logistics center in a bet on a booming future for Southeast Asian e-commerce.
According to Shanghai based Silver Ridge Resources, Singapore Post is betting that the nascent boom in South East Asian e-commerce is set to continue and expand and is committing $145 million to building a three-storey, 550,000 square foot logistics hub that will reportedly be able to handle 100,000 packages daily.
The center will be SE Asia’s first and is set to open in the second half of 2016. E-commerce has helped boost SingPost’s revenues and helped offset a steep decline in its core postal delivery business. It’s also helped make it attractive to outside investors such as Alibaba, the Chinese e-commerce giant which, in May, said it will pay $250 million for a stake in the company as part of a drive to set up an international e-commerce logistics business in the region.
“E-commerce is still poorly represented in SE Asia, accounting for a tiny 0.2% of all retail sales; even worse than rising star, India,” said Rhys Quinlan, an analyst at Silver Ridge Resources. “Despite constant media references to Southeast Asia’s economic vulnerability when viewed against advanced regions like the US and Europe, the rise of the middle class in the region is relentless with many ASEAN economies still growing at well over 5% per annum. SingPost can obviously see this potential and is, commendably, putting its money where its mouth is,” he added.
Although SingPost intends to fund the hub’s construction entirely from its own resources, the company says that it will serve the entire region, not just Singapore.
Silver Ridge Resources says it has acquired holdings in SIngPost’s stock on behalf of clients citing its enormous potential as e-commerce becomes more widely spread throughout the region.
About Silver Ridge Resources:
Founded in 2005, Silver Ridge Resources is an independent, full-service brokerage, investment planning and management concern committed to delivering innovative capital appreciation and preservation solutions to individuals and families with a high net worth. We place the welfare of our clients and their families first and we pride ourselves on having become the first port of call for their financial affairs. We consistently exceed our clients’ expectations by going the extra mile in terms of attention to detail, delivery of service and, most importantly, returns on investment.
From our headquarters in Shanghai, China and offices around the Asia Pacific region, we currently oversee the deployment of over $4.5 billion of assets on behalf of clients both in Asia and around the world.
Contact Silver Ridge Resources:
681 Haining Rd
Zhabei, Shanghai
200085
8675586243512
info@silverridgeresources.com
http://www.silverridgeresources.com