Tiong Nam to invest RM217.9mil in capex over two years

KUALA LUMPUR: Tiong Nam Logistics Holdings Bhd will continue on an expansion drive with RM217.9 million capital expenditure (capex) allocated for the financial years ending March 31, 2023 (FY2023) and March 31, 2024 (FY2024) to grow its logistics and warehousing services division.

The significant investments will be channelled to the group’s warehousing facilities to cater to rising demand for its specialised total logistics solutions.

Managing director Ong Yoong Nyock said the logistics and warehousing services remain as pertinent as ever, as businesses and households rely on efficient supply chains.

"We are committed to reinforcing our position in Malaysia as a leading total logistics solutions provider, with seamless connectivity of our logistics fleet and warehousing presence across all states in the country,” he said in a statement today.

He said furthermore, as the regional economies continue to improve, the group is poised to support increasing trade activity via its extensive routes and connectivity to other countries in Asean, up to China.

The recent collaboration with Johor Corporation’s subsidiary JLand Group will enable the group to build a stronger distribution network that can enhance its competitive advantage in the long term, he said.

Tiong Nam said of the total capex, 70 per cent would be allocated to the ongoing warehouse construction in Senai, Johor and the remaining 30 per cent to the construction of two warehouses in Kempas, Johor, and Kulim, Kedah.

The warehouse construction in Senai, Johor is expected to be completed in FY2023, and upon completion, the facility will be leased to Mercedes Benz Parts Logistics Asia Pacific Sdn Bhd, while the construction of two warehouses in Kempas, Johor, and Kulim, Kedah is expected to commence in FY2023 and be completed in FY2024.

Together with the warehouses in Malaysia, Singapore, Thailand and Laos, the new warehouses would increase the group’s total warehousing capacity by 16.2 per cent to 7.9 million square feet in FY2024 from 6.8 million square feet as at March 2022. - Bernama