Goldman Sachs, SK back Korea cold chain play

Each investor will contribute an initial KRW25 billion and retain an option to invest an additional KRW12.5 billion each within one year. The plan is to construct the country’s largest cold chain logistics center in the port city of Incheon.

Belstar Superfreeze was set up in 2014 by US investment platform EMP Belstar and is touted as a leading player in LNG cold energy. This technology uses liquefied natural gas to cool products instead of electric systems. The technique is said to enable power savings of 70% while facilitating the ultra-low temperatures needed by medical goods and high-end fisheries. 

The company claims to operate the first-ever energy-independent cold chain facility in Korea’s Oseong Industrial Complex. This business combines LNG systems with various new and renewable energy technologies such as photovoltaics, fuel cell power, and energy storage.

Development work at Incheon is expected to establish a hub for perishable food exports around the region, particularly targeting China. Seaborne freight accounts for 100% of Korea’s imports and exports and 75% of GDP is in foreign trade.

“Drawing on Goldman Sachs’ global network, experience in growing companies and cold chain logistics expertise, we endeavor to make real Korea’s ambitions to become the cold chain hub of Northeast Asia,” Daniel Yun, chairman of EMP Belstar, said in a statement.

In 2010, Goldman Sachs invested $319 million in global cold chain leader Americold, fully exiting in 2019. The firm has invested more than $4 billion in Korean businesses since 1999, with previous exposure to the local logistics space including a $50 million commitment to SPP Shipbuilding.

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• Topics
• North Asia
• Expansion
• Industrials
• South Korea
• Goldman Sachs
• Logistics
• shipping