Temperature-controlled logistics will help transport COVID-19 vaccines quickly and safely, and accelerate the global pandemic recovery. In this series, IFC outlines why we need to invest in temperature-controlled logistics now, and the opportunities and challenges that lie ahead.
Covid-19 vaccines currently in development requires careful temperature control during all stages of shipment, storage and distribution. Temperature-controlled logistics are a crucial but often under-recognized solution for guaranteeing public health, as well as improving food security, ensuring economic prosperity, and limiting carbon emissions.
Temperature-Controlled Logistics are a key solution for achieving public health goals, realizing economic growth and maintaining reliable nutrition around the world. Developing nations are currently facing some of the most urgent needs in the TCL sector, especially as they face the challenges of distributing new vaccines on an unprecedented scale.
The Temperature-Controlled Logistics market represents an attractive investment opportunity in emerging markets. There is a growing demand for services, and relatively few organized providers. This presents opportunities for third-party TCL infrastructure and equipment investments in the agricultural sector, as well as higher-priced sectors like frozen food and pharmaceuticals.
IFC evaluates markets to identify barriers to private participation and specific investment opportunities, as well as test early-stage business models and develop new projects. Through InfraVentures, IFC and select private sponsors co-invest in pilot projects to establish “proof of concept” by financing limited capital investments. If the business model is proven viable, this pilot project is scaled up with IFC mainstream financing.
IFC has many years of experience in support of pioneering Temperature-Controlled Logistics companies in Asia. The experience gained from these investments makes IFC a leader in third-party logistics finance. This publication highlights lessons from three projects: Snowman Logistics in India, Shanghai Zhengming Modern Logistics Company in China, and Preferred Freezer Services (formerly Antara) in Vietnam.