News | July 6, 2007

Nestle Indonesia Renews Warehousing And Distribution Contract With GAC Samudera Logistics

GAC Samudera Logistics (GSL), a joint venture between UAE-based GAC and Samudera Indonesia Group, has announced its contract renewal with Nestlé Indonesia to manage the international food and beverage company's warehousing and distribution needs in the country.

Nestle has a long-standing relationship with GAC, going back to over a decade ago in the Middle East when GAC built the first third party logistics facility in the Gulf, now a fully-fledged GAC Logistics Park - from which GAC is still handling Nestle's regional supply chain requirements today.

Under the continuing arrangement, GSL will manage Nestlé's West Java, South Sumatra and West Kalimantan storage and inventory management requirements. As Nestlé has witnessed substantial volume growth and increasing distribution complexities since the existing agreement started in June 2005, GSL is now preparing for a more extensive scope of work for the global brand.

GSL Managing Director Kaare Thuesen says this new long-term exclusive contract is a boost to GSL's expanding logistics operations. The company recently invested USD4.4 million to expand its state-of-the art multi-user distribution centre in Lippo Cikarang in the Bekasi district, east of Jakarta. The extended facility will occupy a total of 9,000 square metres and offer an additional 12,000 pallet positions, increasing the current pallet capacity to 34,000.

He adds: 'We are confident that our expanded facilities at the distribution centre in Lippo Cikarang, coupled with our proven warehouse management techniques and advanced IT capabilities, will enable us to enhance Nestlé's supply chain and allow us to play an even bigger role in supporting their planned business growth.'

Nestlé Indonesia's Supply Chain Director, Wisman Djaja says: 'The Distribution Centre is strategic to our business. It is one of the key enablers for Nestlé Indonesia in its endeavour to provide the best service to its valuable customers. Most of our fast-growing modern channel customers are served from this DC. I am happy to see that GSL has been investing in training and development to grow talent, an important complementary to its excellent infrastructure. After all, talented employees set a company apart from its peers.'

About the GAC Group
The GAC Group (GAC) is the world's largest independent shipping, logistics and marine services provider, with over 260 offices worldwide.

Established in 1956, GAC's core business covers three key areas - shipping, logistics and marine services. The GAC brand reflects value for money, quality, continuity, innovation and global reach.

GAC employs more than 7,300 people worldwide. The GAC Group corporate head office is in Dubai, in the United Arab Emirates. For more information about GAC, visit www.gacworld.com

About the Samudera Indonesia Group
Founded in 1964 by Mr. Soedarpo Sastrosatomo along with other member of shareholders. For almost 40 years, Samudera Indonesia has grown and expanded its business from ocean going shipping company into integrated transportation company providing shipping, agency and terminal, and logistics services. And since 1999, the Company has been publicly listed on the Jakarta Stock Exchange.

Throughout its operations, Samudera Indonesia employs around 2,300 employees and is supported by 30 branch offices and agencies in the major ports in Indonesia, and 41 agencies in the major ports cities in Asia.

SOURCE: GAC Samudera Logistics