PETALING JAYA: Straits Inter Logistics Bhd has proposed to diversify its existing business to include land transportation and logistics business through its wholly owned subsidiary Straits Alliance Transport Sdn Bhd to provide long-term sustainability to its financial position.
Currently, the group is involved in the provision of trading of oil products and oil bunkering services.
It told the stock exchange that the proposed diversification bodes well with the group’s strategy to identify new business opportunities within the logistics segment that is expected to provide additional revenue and income stream.
This also serves as an expansion strategy of the group’s business activities into land transportation and logistics business, mainly due to the requests from its existing customers for these two services.
Through the proposed diversification, the group is expected to widen its existing customer profiles to include customers from both land transportation and logistics industry as well as from marine transportation and logistics industry moving forward.
The group believes it has the existing capacities, capabilities and resources to venture into the land transportation and logistics business, as the nature and business processes of oil bunkering and land transportation are essentially similar.
Notwithstanding the proposed diversification, the group said it will continue with the current core business activities in the same manner and will continue its efforts to enhance the performance of its existing core business activities.
Source: The Sun Daily