SIBU: NCB Holdings Bhd’s unit Kontena Nasional Bhd is expected to break even and turn around by middle of 2016, said group managing director Abi Sofian Abdul Hamid.
He said the loss-making logistics and haulage unit of NCB had undergone an intensive business restructuring and remodelling beginning November 2014 and had shown positive results.
“Kontena Nasional’s losses in financial year 2013 was at RM70mil and in 2014 we managed to bring it down to about RM55mil,” Abi Sofian told Bernama at the Malaysia Unit Trust Week 2015 (MSAM 2015).
He said among the actions taken were to cease operations of its non-core cross-border business, giving more focus on strengthening its core competency of container haulage and increase assets utilisation.
“With assets of 350 prime movers and more than 1,000 trailers, in the last three months, Kontena Nasional has managed to increase its asset utilisation from 50% to 70%,” he said.
On the NCB group’s prospects this year, Abi Sofian said he was confident it would be positive following a good performance of its other unit, Northport Corp Bhd, besides the improvement made at Kontena Nasional.
He said despite the global economic uncertainties, the sliding local currency value against major currencies and the low oil prices, NCB still had good opportunities ahead on the back of the good services it provided.
However, he said, NCB recognised that there could be an indirect impact on its business following the drop in ringgit and oil prices as well as the implementation of the goods and services tax.
“Moving forward, the group is looking into creating synergy with this two units and utilise its resources to provide total logistics solution,” he said.
The group, controlled by Permodalan Nasional Bhd (PNB), participated in the MSSM 2015 to relay the message to public and other business partners in PNB that it was still strong, he said. — Bernama
Did you find this article insightful?