AC Logistics Holdings Corp. and Glacier Megafridge, Inc. are building a cold chain facility in Cagayan de Oro City to serve businesses in Northern Mindanao.

The two logistics companies broke ground for the project on Nov. 18. The facility is expected to start operations in 2022, AC Logistics said in an e-mailed statement on Friday.

“We envision a closed loop corridor that preserves and prolongs shelf life of both local and imported meat and poultry, fish catch and farm produce from traders, manufacturers and producers in and around the region,” Glacier Megafridge President and Chief Executive Officer Arturo C. Yan said.

Demand for vaccine storage, food, and import goods are increasing the need for cold chain facilities.

AC Logistics said there is a shortage in capacity to meet the growth in the country’s cold storage needs for food production and consumption.

“The current need to keep and preserve temperature-sensitive vaccines and other healthcare products in cold storage facilities exacerbates the shortfall,” it noted.

In July, the Cold Chain Association of the Philippines said there would be a 10% growth in the country’s cold storage industry capacity this year, with 50,000 new pallets to be added to the existing 500,000.

Over half or 60% of the additional capacity will be located in Luzon, while 40% will be in Mindanao.

Mr. Yan said bringing facilities closer to key sources of food provides “prospect of better incomes for farmers and fishermen, [as well as] safe, secure and sufficient products at stable prices to consumers.” — Arjay L. Balinbin

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