TRANSPORT • Optimising fleet deployment and improving operational efficiency by capitalising on increased internal production. • Recorded a 14% increase in transport volume to 7.04 million MT, driven by higher internal production and FFB diversions. • Implementing an international courier service for Hajj and Umrah baggage, ensuring efficient handling and logistics support for Malaysian pilgrims. • Managed 276 MT of Hajj baggage during the 1445H/2024M season, marking a 15% increase from 240 MT in 2023. KEY INITIATIVES ACHIEVEMENTS BUSINESS PERFORMANCE REVIEW 2024 HIGHLIGHTS CHALLENGES AND MITIGATION CHALLENGES MITIGATION ACTIONS RESULTS • Competition for contract drivers amid rising demand in Malaysia and Singapore’s transportation sector, making driver retention more challenging. • Transitioned contract drivers under a new driver scheme and actively recruited additional drivers. • I ntroduced the the Piece Rate Driver Scheme with enhanced benefits, resulting in the conversion of 15 vendor drivers and the hiring of 15 new drivers in 2024. • Limited capacity to serve the external market, constraining road tanker and cargo operations. • Optimised existing resources and explored formation of a dedicated unit to manage the external market. • Initiated plans to establish an external inland transport unit using a hybrid model to expand capacity and improve service delivery to external customers. OUTLOOK AND PROSPECTS Malaysia’s logistics market is expected to grow at a CAGR of 7.7%, reaching RM367.7 billion by 2027. In line with this trajectory, our transport segment is positioning itself to support a wide range of industries including manufacturing, food and beverage, automotive, and pharmaceuticals by focusing on operational efficiency and service innovation. To capture growth opportunities, the segment is expanding its Inland Transport services into both upstream and downstream sectors. The entry into the Distribution and Courier Services (DCS) and Courier Express Parcel (CEP) segments will support rising demand for e-commerce fulfilment. This expansion is further supported by the development of oil and gas logistics, fourth-party logistics (4PL) offerings, and strategic regional partnerships that strengthen market presence. Profitability remains a priority, with key initiatives including cost optimisation, pricing reviews, and service enhancements. The segment is also pursuing technology integration such as automation, data analytics, and smart logistics systems to improve decision-making and operational efficiency. In support of the Group’s sustainability goals, initiatives are being implemented to manage carbon emissions through the use of EURO V and alternative fuel engines, route optimisation, and recycling practices. These efforts aim to build a competitive, resilient, and future-ready logistics business. Received a Certificate of Appreciation from Kuantan Port, recognised as one of the top 15 forwarding agents. Planted 3,000 trees and established a wildlife corridor at our estate in Gua Musang to protect endangered species. 108 FGV Holdings Berhad | Annual Integrated Report 2024 Business Review: Logistics & Support Division
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