TRANS-Asia Shipping Corp Bhd (Tasco), scheduled to list on Bursa Malaysia main board on Dec 28, will bank on its extensive international network and quality services to stay put in the competitive logistics industry.
Managing director Lee Check Poh said: “We intend to synergise our sea, air and land services by servicing customers with a network that combines the shipping fleet of Nippon Yusen Kabushiki Kaisha (NYK) group,” he said, adding that manufacturers would prefer a “one stop solutions provider.”
According to Lee, automotive manufacturers look out for only total logistics solutions providers with strong international connection and networks when considering the outsourcing of logistics activities.
“Working synergistically with NYK group, our auto logistics division is able to provide a range of logistics solutions to meet these logistics challenges while considering each customer's specific business requirements,” he said.
NYK group is a comprehensive global logistics enterprise with over 379 logistics centres in 34 countries worldwide.
“Our company's objective is to meet the “constantly changing consumers' needs expeditiously and to pursue worldwide synergies in our business covering sea, air and land logistics services,” he said in an interview.
Lee said Tasco provided full logistics supply chain services such as customs brokerage, freight forwarding, transportation, warehousing-related activities and distribution, hence giving them a competitive advantage over other players.
It has six business divisions, namely the ocean, air, land, international freight, auto logistics and international network solutions.
The group's air division contributes 47% to the group's revenue, while ocean and land divisions contribute 29% and 15% respectively. Its international freight division contributes 7%.
Presently, Tasco has a Total Logistics Sales Division that serves as the cross divisional body and the sole customer point.
“We would like to help manufacturers maintain huge volume of parts at minimal inventory cost,” said Lee, adding that the group emphasises on quality control.
Lee said the group offers customised logistic solutions that includes integrated logistics solutions among different modes of transportation, total supply chain solutions, value-added services and door-to-door delivery services.
Tasco is currently eyeing new market segments in pharmaceutical, home appliances, constructions and chemicals industries for its project cargoes division, he said.
Its customer base consists of overseas multinationals such as Japanese, British and American companies from electronic, automobile, furniture and fast consumer goods industries.
“Our major customers are mainly international merchandisers who source product in Malaysia and market in Europe and North America,” said Lee, adding that international customers contribute 70% to 80% of the group's revenue.
He said: “We hope to achieve a double-digit revenue growth on a year-to-year basis.”
“The outlook for general cargo logistics industry is positive, seeing growth of electronic exports, improvement of infrastructure, Iskandar Development Region and rising outsourcing of logistics operations by manufacturers to save cost,” he added.
Tasco registered a net profit of RM12.41mil on revenue of RM354.86mil for the financial year ended Dec 31, 2006.
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