PETALING JAYA, Jan 12 (Bernama) — Kontena Nasional Bhd (KNB) expects its halal cold chain logistics business to churn out about RM25 million revenue this year with the strategic collaboration inked Wednesday with Gerimis Baiduri Sdn Bhd.
Both parties signed a memorandum of understanding to provide services mainly in the transportation and storage services for the frozen and chill industry in the country.
Chief Executive Officer Hood Osman said the move was timely for the company to further expand its third party logistics (3PL) services and halal trade facilitation as the leader in domestic halal facilities and logistics infrastructure.
“KNB has not done cold chain logistics business so far. As we have embarked into the halal sector, cold services is a major requirement to complete the halal supply chain and we can’t do it ourselves.
“Last year, we developed cold warehouses and we need to move to the next level to furnish the cold business further, therefore this partnership with Gerimis is apt and will further develop the business,” he told reporters after the MoU signing.
Hood said KNB will be adding three cold warehouses this year, one each in the north and south and an additional facility in the Klang Valley.
“We will not be acquiring the new warehouses but will be looking into possibilities of government agencies offering for lease,” he said.
Currently, KNB has two cold warehouses, one in Petaling Jaya and Port Klang, offering refrigerated long-and short-term storage nationwide.
Its largest warehouse complex in Port Klang known as “KNDC11” boasts a capacity of 200,000 square feet.
KNB became the first halal certified logistics provider in Malaysia following the certification for its warehouse in Petaling Jaya in December 2009.
Hood said KNB will obtain Jakim-Halal certification for two more of its branches in Johor Baharu and Kuantan by end of this month, in addition to its branches in Penang and Ipoh.
“This will complement efforts towards becoming the preferred ancillary service provider in the country, thus filling the gap in the entire halal production and distribution chain,” he said.
KNB has allocated RM12.5 million this year to expand its 3PL services.
Following the cross-selling collaboration, Hood said KNB will spend RM8 million this year to convert 30 trucks under the 3PL expansion plan.
Gerimis Baiduri is a chill and frozen transport specialist in Malaysia, commanding a fleet of 220 refrigerated trucks.
Its Managing Director Datuk T.S. Liew said the company will add another 50 trucks this year from an average of 25 every year.
“Usually, every year we invest about RM3 million and with the expansion, we expect to increase between RM6 million and RM8 million, including buying one tonne to 20 tonne trucks,” he added.