BUILDING VALUE AT OUR CORE SEC 5 68 Outlook In 2024, our strategic initiatives include increasing our storage capacity in Malaysia to 1,043,990 MT, adding 19,300 MT expansion at Tanjung Langsat, Johor. Furthermore, we plan to upgrade and expand capacity at Terminal 4 in Pasir Gudang, Johor, with an additional 31,000 MT. We are committed to exploring opportunities in East Malaysia, enhancing our capability to handle larger volumes of high-value products such as premium oils and renewable energy. We aim to diversify our customer portfolio and aggressively pursue commercial activities, including biomass feedstock, to ensure long-term business sustainability and profitability. In 2023, we experienced a 3% decrease in tonnage carried, amounting to 6.17 million MT compared to 6.33 million MT in 2022. This decline was primarily due to the lower tonnage of CPO, FFB, and PK carried during the period. Despite that, we persisted in fortifying our foothold within the transportation sector by making headway into the haulage segment via the acquisition of 15 prime movers. Throughout the year, we successfully secured several contracts, including contract with Lembaga Tabung Haji (LTH) to manage the baggage of Malaysia’s 2023 Hajj pilgrims, a defense projects with Ministry of Defence Malaysia (MINDEF) and a railway-related contracts. In alignment with our steadfast commitment towards sustainability, we increased our efforts by acquiring 54 units of Euro 5 Prime Movers for general cargo and CPO tankers from Volvo Trucks Malaysia. These vehicles comply with rigorous international emission standards, promoting enhanced fuel efficiency and a cleaner fleet. These endeavours not only contribute to Malaysia’s 2050 carbon-neutral objective but also underscore our unwavering dedication to innovation, sustainability, and operational excellence across our business. Outlook The Malaysian logistics market is poised for remarkable growth, driven by the transportation, warehousing, and courier services sectors. This expansion will be spurred by e-commerce and technological advancements in supply chain automation. Key sectors such as Food & Beverages (F&B), manufacturing, electronics, automotive, and pharmaceuticals are set to be major growth drivers. We aim to enhance our land transport services through asset optimisation, route planning improvement, and digital tracking implementation, as well as penetrate and commercialise new segments such as 3PL Supply Chain, MTO, Hajj baggage handling, haulage, and FFB transport. We are forging strong relationships with key partners, including PETRONAS Chemicals Marketing (Labuan), Sime Darby Berhad, LTH and Synergy Perdana Sdn Bhd, with the aim of broadening our business scope. By exploring diversification strategies and pursuing growth through mergers and acquisitions, we seek to solidify our standing as a total logistics provider. We will be exploring the expansion of our products handled to cushion against the impacts of palm oil production volatility to ensure stability on overall tonnage. In the project logistics segment, we are actively participating in major infrastructure projects. These include significant undertakings in highways, ports, high-speed trains, and regional economic zones. GROUP BUSINESS REVIEW Overview With 49 years of experience, our Transport segment has solidified its reputation as a reliable provider in the logistics and transportation sector. Featuring a fleet of over 600 multi-size vehicles, we are wellequipped to fulfil a diverse array of client requirements. Our services are comprehensive, covering Inland Transportation with liquid tankers, cargo trucks, side curtains, roll-on/roll-off (roro), and haulage. We also specialise in Contract Logistics through Third-Party Logistics (3PL) services, act as a Multimodal Transport Operator (MTO), offer Freight Forwarding, and manage Special Projects, including the handling of Hajj pilgrims’ baggage. This broad array of offerings enables us to customise logistics solutions to meet the unique requirements of each client. We handle a variety of products, including palm oil, rubber, fertiliser, sugar, FMCG, oil & gas, infrastructure projects, cold chain logistics, and auto parts. Our capability to manage such a diverse product range demonstrates our adaptability and commitment to providing comprehensive logistics services to our clients. Transport Volume (Million MT) 6.17 6.33 5.71 2023 2022 2021 TRANSPORT
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