Agility sees trucking, warehouse operations driving growth

By DAVID TAN
davidtan@thestar.com.my

GEORGE TOWN: Agility, a public-listed logistic company in the Kuwait Stock Exchange and Dubai Financial Market, expects its overland trucking and warehouse operations in the Malaysia to spearhead the growth of its subsidiary, Agility Logistic Sdn Bhd, this year.

Agility chief executive officer Morten Damgaard (South-East Asia/Malaysia) said this was due to the improvements made in the highways and land routes connecting Indochina, Thailand, Singapore, and the rising cost of fuel, which made air and ocean transportation expensive.

Agility's trucking and warehouse business in Malaysia generate more than 40% of the subsidiary's 2011 revenue.

“Besides better connecting infrastructure, there is also improvements in the customs services at the borders,” he told a press conference on the launch of Agility's new 60,000 sq ft warehouse in Bayan Lepas by Penang Chief Minister Lim Guan Eng.

Agility CEO (SEA/Malaysia) Morten Damgaard(left) and Agility Penang Branch manager Ali Ahmad at the press conference

Agility also has three warehouses in Kuala Lumpur, two in Johor, and one in Malacca, comprising about 600,000 sq ft of warehouse space.

“We are getting a lot more interest from our customers to transport their goods by land, which is one of the reasons why we moved to a larger warehouse,” Damgaard said, adding that Indonesia, Malaysia, Thailand and Vietnam were the key markets in the Asean region driving growth for the logistics industry.

“In Asia, China and India are still the top two drivers of growth for the logistics business.

“The commissioning of the facility in Penang underpins Agility's emerging markets growth strategy and is a testament to the successful expansion of our contract logistics business in Malaysia and the Asia-Pacific region,” he said.

Meanwhile, Lim said according to Frost Sullivan, the logistics industry in Malaysia was expected to experience a year-on-year growth of 10.3% to reach RM129.9bil in 2012.

“The logistics industry in the country is projected to grow at a compounded annual growth rate of 11.6% to touch RM203.7bil in 2016,” he said.

Agility Logistic Sdn Bhd's new warehouse in Bayan Lepas.

Employing more than 22,000 employees in 550 offices across 100 countries, Agility's annual revenue is around US$6bil.