TOTAL logistics player Freight Management Holdings Bhd (FMH), which is finalising a joint-venture company in Indonesia, also plans to expand its freight services in another South-East Asian (SEA) country by next year.
Managing director Chew Chong Keat said the operations in this new location would be similar to its proposed Indonesian ventures in the sea and airfreight services.
“Since we are in the midst of negotiation, I am not able to disclose the exact location,” he told StarBiz,
He ,said the expansion was in line with the group's goal to create a strong regional base.
Chew said the plan to expand its freight services in Indonesia, without having to invest in major infrastructure and transportation such as warehouses and trucks, would mitigate the direct impact from rising fuel prices.
Chew Chong Keat FMH holds a 62% stake in JV company, PT Icon Freight Indonesia, via its subsidiary, Icon Line (M) Sdn Bhd.
“We will have to outsource the warehouse and transportation needs but intend to concentrate on our core freight services business,” he said.
Chew said Indonesia's large manufacturing sector offers great prospects for freight services.
The country's population is ten times higher than Malaysia's and its domestic consumption is also high, he added.
Prior to Indonesia, FMH established its first overseas office in Western Australia two years ago with the setting up of a joint-venture company, Icon Freight Services Pty Ltd, in which it controls 55%.
On the local front, FMH owns more than 190,000sq ft of warehousing, 20 trucks and nine prime movers for its freight operations.
FMH's freight services include full container loads and less container load services for sea, rail and air. This made up about 90% of the group's pre-tax profit.
Besides freight services, FMH is also expanding its fleet of barges and tugboat services of its 51% owned Singapore-based TCH Marine Pte Ltd.
“We will receive a new barge valued at S$1.6mil next month,” he said. FMH currently owns and operates seven barges and nine tugboats.
Chew is confident that the group would have another prosperous year in its yet-to-be announced financial result for financial year ended June 30, 2008.
“In fact, our nine months cumulative results had exceed our internal growth targets of between 10% and 15%,” he said.
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