Keppel establishes new logistics centre and water projects in Tianjin Eco-City

The TECIDC to offer "green" services that can help customers adopt sustainable supply chain practices and achieve better resource efficiency.

Members of the Keppel Group will deepen and broaden its investments and scope of activities in the Sino-Singapore Tianjin Eco-City (Tianjin Eco-City) in China through three agreements to be signed Tuesday.

The first agreement will be signed by Keppel Telecommunications & Transportation Ltd (Keppel T&T) for the land use rights for the development of an integrated logistics distribution centre within the Eco Industrial Park (EIP) of the Tianjin Eco-City.

Keppel Integrated Engineering Ltd (KIE), wholly owned subsidiary of Keppel Corporation Limited, will sign a framework agreement to explore joint investment and development of water treatment projects in the Tianjin Eco-City. KIE will also enter into a lease agreement that will establish its presence in a new innovation centre.

The agreements, when fully executed, will significantly increase Keppel Group's presence in the Sino-Singapore Tianjin Eco-City (Tianjin Eco-City) in China. They will be signed at a ceremony to be witnessed by Singapore Minister for National Development Mr Mah Bow Tan and other Singaporean and Chinese dignitaries.

Keppel T&T's investment will mark its first and significant step into North China

Keppel T&T will sign the agreement for land use rights with the Sino-Singapore Tianjin Eco-City Investment and Development Co Ltd (SSTEC) for the development and operation of a green integrated logistics distribution centre. The agreement is subject, inter alia, to the approval of the relevant authorities in China.

The Tianjin Eco-City Integrated Logistics Distribution Centre (TECIDC) will be located on a 2.8 hectares land plot within the EIP of the Tianjin Eco-City, and will be wholly owned and operated by Keppel T&T. It will have a total estimated investment amount of RMB 135 million, and feature a 35,000 square metres modern warehouse space when completed.

Mr Pang Hee Hon, CEO of Keppel T&T, said, "This Centre, when completed in end 2012, will extend our logistics footprint to North China and further establish our presence in China. We will be able to capitalise on the strategic position of the Tianjin Eco-City and its proximity to major industries in the Tianjin Economic-Technological Development Area and Hangu district to meet the needs of clients with best-in-class integrated logistics services."

The Tianjin Eco-City, situated in the fast growing Tianjin Binhai New Area, is well-positioned to be the focal point for growth in the Bohai Rim region. It is well connected to key air and sea gateways, providing a strategic base from which to support the escalating need for high-end integrated logistics services in the Eco-City and the surrounding industrial areas.

In line with the Eco-City's vision to be a model of sustainable development, the TECIDC will offer "green" services such as reverse logistics services that can help customers adopt sustainable supply chain practices and achieve better resource efficiency. The facility will also be fitted out with energy-efficient features and state-of-the-art management systems that maximise utilisation of resources such as warehouse space and vehicle.

The foregoing agreement is not expected to have any material impact on the net tangible assets and consolidated earnings per share of Keppel T&T for the current financial year.

KIE to ramp up presence with wastewater projects and innovation centre
Meanwhile in the framework agreement with Tianjin Eco-City Investment and Development Company (TECID), KIE will explore joint investment and development of water treatment projects in the Tianjin Eco-City. The projects will include a new water recycling plant that will reuse reclaimed wastewater in the Eco-City.

BG (NS) Tay Lim Heng, CEO of KIE, said, "The collaboration with TECID will leverage KIE's wide experience in wastewater treatment and water recycling to contribute towards the growth of the water resource and wastewater management industry in the Tianjin Eco-City."

The water plant will purify treated wastewater to a quality that is higher than China's national water discharge standard. The recycled water is suitable for reuse in a number of non-potable applications such as landscaping, parks and golf courses irrigation, as well as in various industrial applications such as cooling water, dust control and construction activities. The recycled water from the water plant hence provides an additional source of water, reducing overall demand on fresh water and alleviating water scarcity challenges in North China, according to a Keppel report.

At the same time, KIE will enter into an agreement with SSTEC to lease 3,000 square metres of office, laboratory and workshop space for the Tianjin Eco-City Sustainable Development Innovation Centre (TSDIC). KIE is the first anchor tenant of what is envisioned to be a vibrant centre for R&D and innovation in the Eco-City. As one of the Singapore companies deploying eco-technologies in the Tianjin Eco-City, Keppel Integrated Engineering (KIE) will also take the lead in developing the TSDIC.

The TSDIC will bring together international educational institutions, government agencies, leading international companies and financial institutions under one roof. As the Eco-City will be a model of sustainable urban living, the TSDIC will play an important role in attracting talents from China and the rest of the world.

By having a significant presence in the TSDIC, KIE will tap on the innovation centre's talent pools and networks to strengthen its environmental engineering competencies and offerings.