PETALING JAYA: Felda Global Ventures Holdings Bhd (FGV) is keen to participate in the development of the East Coast Rail Link (ECRL) project by offering its expertise in providing integrated logistics services with parties involved in the project.
FGV’s officer-in-charge Datuk Khairil Anuar Aziz said it has the advantage to provide logistics services for the project as its facilities are either in or close to Kuantan Port while ECRL’s construction would be based in Kuantan before being expanded to Kelantan and Selangor.
“We are looking to support the project in terms of providing transport services to carry equipment and building materials along the entire stretch of the ECRL. We can be amongst the one-stop logistic centres for the project.
“FGV has the experience and a proven track record in its ability to provide integrated logistics services such as for the Mass Rapid Transit and other mega infrastructure projects,” he said in a statement yesterday.
About 10% of the seven-year construction period of the ECRL project is estimated to involve logistics support. The government has also expressed its commitment to provide opportunities for local companies and local contractors in the construction of the 688km rail track.
Khairil said the plantation and sugar sectors will remain as core businesses for the group while the expansion in the logistics and others (LO) sector will provide a good supplementary income to the group.
“There is great potential for FGV’s logistics business to expand both locally and overseas and one of them is through strategic collaboration with leading companies in the related industry. This will generate more stable income to FGV and reduce dependency especially on the Plantation Sector and indirectly provide sustainable returns to shareholders,” he added.
Earlier this year, FGV structured its business into three main sectors namely plantation, sugar and LO to streamline the management process and increase accountability, aimed at improving operational and management focus, and enhancing clarity and reporting accountability.
The new structure is also expected to drive greater synergies by grouping like businesses under a fully integrated value chain.
FGV’s logistics businesses include multi-modal transport operations, freight forwarding, cargo transport, bulk storage tank, warehousing and handling of liquid terminal operations at the port.
In terms of logistics assets, FGV has nearly 500 trucks, 15 transport hubs, two warehouses, two jetty and nine bulking facilities with a total capacity of over 900,000 MT.
“At the global front, FGV’s joint venture with the Westbury Group, Pakistan to expand an additional 38,000 MT storage tank capacity in Port Qasim is on track with some 15,000 MT completed in May,” said Khairil.
He said the entire project will be completed by year-end. At the same time, it is also looking at opportunities for such collaborations in Indonesia.
Source: The Sun Daily