KUALA LUMPUR: Tiong Nam Logistics Holdings Bhd
has allocated RM100mil as capital expenditure (capex) for the financial year ending March 31, 2018, as part of an expansion plan for its logistics and warehousing network across South-East Asia.
The capex would be used to buy new vehicles to grow the group’s transportation fleet, build new warehouses in line with growing demand and strengthen its newly-established South-East Asia to China cross-border logistics network, it said in a statement on Monday.
“Looking ahead, we are confident that our expanded infrastructure and improved range of services would provide businesses with greater regional reach, granting them the competitive edge and agility in today’s global marketplace,” said managing director Ong Yoong Nyock.
Tiong Nam invested RM286.8mil over two years spanning FY2016 and FY2017, during which the group expanded its presence in Vietnam, Myanmar, and China.
The group also saw its total warehousing capacity increase to 5.3 million sq ft as at end-FY2017, from 4.8 million sq ft as at end-FY2016.
“With the new capex allocation, Tiong Nam expects its warehousing capacity to increase by 0.7 million sq ft to reach 5.9 million sq ft by end-FY2018.
“The group has a long term target of reaching 7.1 million sq ft in total warehousing capacity in FY2020,” he said.
Meanwhile, the group’s newly-established first last-mile delivery service, Instant, is to target new opportunities in the e-commerce sector, has entered into discussions with a number of prominent e-commerce brands in Malaysia.
“We are hopeful of forging long-term partnerships in the e-commerce space both domestically and regionally,” said Ong.
For the first quarter ended June 30, 2017, Tiong Nam recorded revenue and net profit of RM140.9mil and RM0.7mil respectively, compared to RM131.1mil and RM13.4mil a year ago. - Bernama
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