KUALA LUMPUR (Aug 14): Felda Global Ventures Holdings Bhd wants to offer its expertise in providing integrated logistics services with parties involved in the development of the RM55 billion East Coast Rail Link (ECRL) project.

“We are looking to support the project in terms of providing transportation services to carry equipment and building materials along the entire stretch of the ECRL project. We can be amongst the one-stop logistic centres for the project,” FGV Officer-in-Charge Datuk Khairil Anuar Aziz said in a statement today.

“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 added, noting 10% of the seven-year construction period of the ECRL project is estimated to involve logistics support.

FGV, through its Logistics & Others (LO) sector, recently invited a delegation from ECRL to visit its Felda Transport Services Kuantan Depot Open Yard Facility and Felda Johore-Bulkers Kuantan Warehouse in Kuantan Port, near Gebeng.

Since the 688km-long ECRL’s construction would be based in Kuantan, before being expanded to Kelantan and Selangor, Khairil Anuar said FGV has the advantage to provide logistics services for the project, as its facilities are either in or close to Kuantan Port.

FGV’s LO sector has expertise in multi-modal transport operations, freight forwarding, cargo transport, bulk storage tank, warehousing and operation of liquid terminal operations at the port.

In terms of logistics assets, FGV — the world's largest palm oil producer — has nearly 500 trucks, 15 transport hubs, two warehouses, two jetty and nine bulking facilities, with a total capacity of over 900,000 tonnes.

“At the global front, FGV’s joint-venture with the Westbury Group, Pakistan to expand an additional 38,000-tonne storage tank capacity in Port Qasim, is on track with some 15,000 tonnes completed in May. Insya-Allah, the entire project will be completed by the end of the year. Similarly, we are also looking at opportunities for such collaborations in Indonesia,” he said.

“We are on the right track to strengthen our logistics business. FGV will continue to explore opportunities and potentials available to enhance the group’s future earnings,” he added.

While plantation and sugar sectors will remain as FGV’s core businesses, the palm oil player’s expansion in the LO sector will provide a good supplementary income.

“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,” said Khairil Anuar.

“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 had structured its business into three main sectors — 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. — theedgemarkets.com

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