SMTrack inks trade traceability pact with China company


  • Community
  • Wednesday, 25 Feb 2015

KUCHING: SMTrack Bhd aims to be at the forefront in offering cross-border secured trade traceability for palm oil-related products.

Under a contract inked with Sino Renewable Energy Corporation (SREC), China, two weeks ago, SMTrack would source, transport and export up to 5,000 tonnes per month of palm acid oil or palm oil sludge from mills in South-East Asia to be processed by SREC.

SREC will purchase palm oil acid based on market price for 24 months from SMTrack. The contract could be renewed for three years.

SREC has a refinery in inland city port in Luzhou, Sichuan Province in China, with state-of-the-art equipment for enhancing natural oils, including palm acid oils, for processing into biodiesel, fatty acids and oleic oil.

SREC, according to SMTrack, owns a large network of sales support throughout China and has a big number of customers in Europe, mainly in providing biodiesel, refined oils and related products.

SMTrack will provide traceability to ensure the product is not tampered as method to insure the quality of the product and provide the necessary infrastructure, including customs clearance and container/tanker tracking.

Under the agreement, the two parties would research and develop the method to comprehensively utilise the wastes from palm oil mills.

SMTrack said it had obtained a licence from Malaysian Palm Oil Board (MPOB) to transport and export palm oil products, including the trading of crude palm oil (CPO), sludge palm oil, processed palm oil, crude and processed palm kernel oil and export of CPO.

“The company will be able to utilise the ability to deal direct with suppliers from the source to ensure that full traceability can be complied with, thereby providing reassurance on the quality via track and trace of such exports to other countrues,” it added when releasing its latest quarterly results.

Following the recent expiry of its contract with the Malaysian Customs Department on the implementation and operation of the container security and trade facilitation system (Secured Trade project) using radio frequency identification (RFID), SMTrack said it had taken precaution to enhance the current domestic secured trade system to one which included cross-border secured trade facilitation replying on the core RFID traceability system.

“The existing technology and hardware can thus be re-utilised for online tracking of containers from one country to another,” it added.

The Secured Trade Project developed by SMTrack (formerly Smarttag Solutions Bhd) was to be commercialised for all Customs checkpoints in Malaysia in 2012 but it had never taken off.

In the quarter to Dec 31, 2014, SMTrack’s pre-tax loss widened to RM6.75mil from RM1.66mil a year ago as revenue dropped to RM214,000 from RM237,000.

“The significant increase in pre-tax loss was mainly due to impairment of investment in a jointly controlled entity of RM4.99mil,” it said in explanatory notes to the results.

Sarawakian tycoon Datuk Amar Abdul Hamed Sepawi is SMTrack former chairman and now non-independent non-executive director. He is also chairman of public-listed plantations companies Sarawak Plantation Bhd and Ta Ann Holdings Bhd.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Business , East Malaysia , jack

   

Across the site