notes to the financial statements - Investor Relations

CWT Limited
OPERATIONS
REVIEW
1.
Brunei Darussalam to supply pixelated camouflage
combat uniforms, combat vests and field packs for
the Brunei army. Additionally our defence logistics
arm continued to provide project and shipment
management services for multiple overseas
exercises and break bulk cargos. We also
expanded our retail management for the Singapore
Armed Forces’ (SAF) eMarts from four to 21
eMarts across the island. In July 2011, CWT was
one of the recipients for the Meritorious Defence
Partner Award from the Singapore Ministry of
Defence (MINDEF) in appreciation of organisations
that have shown commendable support for Total
Defence.
As the largest warehouse operator in Singapore
and managing over 10 million square feet of global
warehouse space, CWT is committed to providing
reliable, efficient and effective storage, movement
and distribution services and solutions to our
customers. In 2011 we continued to consolidate
our market leadership position and expanded
our warehouse assets to meet the increasingly
growing demand for warehouse space. We
completed the construction of two new warehouses
in Singapore last year – CWT Logistics Hub 3
and Pandan Logistics Hub which are operating at
full occupancy – provide some of our warehouse
and logistics customers with a combined 1.16
million square feet of warehouse space. Both
multi-level warehouses come with drive-up
ramps for transport vehicles to reach each facility
directly, facilitating efficient loading and unloading
operations and vehicle turnaround time.
Complementary to our logistics capabilities and
solutions, CWT’s extensive logistics infrastructure
has remained a key requisite component for our
market competitiveness and it is vital for us to
continue to strengthen and expand this advantage.
In mid 2012 we will add to our assets portfolio
another 100,000 square feet of warehouse which
we are currently building in Port Klang, Malaysia.
Also in the pipeline is a new and bigger CWT
Cold Hub 2 – the 725,000-square foot cold chain
logistics facility in Singapore is expected to be
ready in 2013.
ENGINEERING SERVICES
Our engineering and maintenance arm Indeco
Engineers secured over S$75 million worth of
maintenance service contracts for the year under
review and continued to gain market share in the
local market.
2.
Among the key highlights, we inked a major
contract with AIMS AMP Capital Industrial REIT
(AACI REIT) to design and construct a warehouse
in Singapore and renewed contracts with the
Republic of Singapore Air Force (RSAF) to provide
maintenance services for its aviation ground
equipment and air specialist vehicles. We further
enhanced our market leadership in High Volume
Low Speed (HVLS) fans when we were awarded
the contract to supply and install HVLS fans to 30
schools under Phase 1 of the Ministry of Education
(MOE) Schools Project.
We were also awarded by the Singapore Land
Authority the symbolic and historical project
for the dismantling of the railway and ancillary
structure from Woodlands Train Checkpoint to
Tanjong Pagar Railway Station. In addition, we
helped maintain vehicles, facilities and buildings
for various government and related institutions
throughout the year. These included army camps
and military vehicles. In 2011 Indeco received the
‘Minister for Defence Award’ in recognition for our
significant contribution to the Singapore defence
force.
Expanding beyond our domestic activities, we
have also formed a joint venture in India to provide
facility and vehicle maintenance services and tap
into the huge market there.
1. Packaging and
distribution hub
operations
2. Pandan
Logistics Hub