Com­pa­nies to de­velop e-com­merce re­gional dis­tri­bu­tion cen­tre in Sepang

New Straits Times - - Business - RUPA DAMODARAN KUALA LUMPUR ru­pa­banerji@me­di­aprima.com.my

POS Malaysia’s foray into the in­ter­na­tional lo­gis­tics busi­ness will take off at a faster pace fol­low­ing a col­lab­o­ra­tion with on­line shop­ping plat­form Lazada to de­velop an e-com­merce re­gional dis­tri­bu­tion cen­tre in Sepang.

Pos Malaysia group chief ex­ec­u­tive of­fi­cer (CEO) Datuk Mohd Shukrie Mohd Salleh de­scribed the tie-up as seam­less as it could pro­vide end-to–end so­lu­tions.

“With the fa­cil­i­ties we have — air­craft, ground han­dling fa­cil­i­ties and Pos Malaysia in­ter­na­tional hub — plus Lazada pro­vid­ing the e-com­merce, han­dling of items and train­ing, we should be the per­fect part­ners,” he said at the sign­ing of a mem­o­ran­dum of col­lab­o­ra­tion, here, yes­ter­day.

The col­lab­o­ra­tion was signed by Shukrie and Lazada Malaysia CEO Hans-Peter Res­sel.

Shukrie said the re­gional devel­op­ment cen­tre at the old low­cost car­rier ter­mi­nal (LCCT) in Sepang would be ren­o­vated next week and the first phase of the 330,000 sq feet space should be ready by the end of Au­gust.

The sec­ond phase is tar­geted for com­ple­tion by the end of the year.

As Malaysia Air­ports Hold­ings Bhd had al­lo­cated 430,000 sq feet for ware­house fa­cil­i­ties at the cen­tre, Shukrie said the re­main­ing space would be used for other ex­press han­dling and cross-dock­ing re­quire­ments.

“A to­tal of RM120 mil­lion will be spent on the over­all devel­op­ment of the old LCCT. For the first phase of devel­op­ment of the re­gional devel­op­ment cen­tre with Lazada, we will be spend­ing RM60 mil­lion.”

Shukrie said some 34 mil­lion items would move through the ware­house next year and the num­ber would in­crease to 62 mil­lion in 2019.

The re­gional devel­op­ment cen­tre, which has the ca­pac­ity to han­dle 182,000 tonnes an­nu­ally, marks Pos Malaysia’s long-term strat­egy to be an end-to-end in­te­grated lo­gis­tics provider.

It acts as a one-stop cen­tre by pro­vid­ing value-added ser­vices such as air-sea-land trans­porta­tion so­lu­tions, in­ter­na­tional trans­ship­ment, postal and courier ser­vices and ware­hous­ing fa­cil­i­ties.

Shukrie said the global e-com­merce mar­ket had the ca­pac­ity to grow by US$200 mil­lion (RM865 mil­lion) an­nu­ally.

“We used to fo­cus on do­mes­tic e-com­merce but with this col­lab­o­ra­tion, it will change the way Pos Malaysia has done busi­ness over the years.”

Res­sel said the busi­ness-to­con­sumer col­lab­o­ra­tion would en­able the Malaysia’s small and medium en­ter­prises to tap global busi­ness.

Lazada is tar­get­ing the re­gional devel­op­ment cen­tre to be a re­gional hub for busi­nesses, in­clud­ing those from China.

He said although the re­turn on in­vest­ment (ROI) from the col­lab­o­ra­tion might be hard to quan­tify, the growth of the in­dus­try on the ground would be a good mea­sure.

“The growth of e-com­merce in the coun­try, from 0.3 per cent of re­tail vol­ume five years ago to two per cent to­day, is also the ROI.”

Also pre­sent were DRB-HICOM group man­ag­ing di­rec­tor Datuk Seri Syed Faisal Al­bar.

On postal tar­iff hikes, Shukrie said the com­pany was wait­ing for the gov­ern­ment’s de­ci­sion.


Pos Malaysia group chief ex­ec­u­tive of­fi­cer (CEO) Datuk Mohd Shukrie Mohd Salleh (left) and Lazada Malaysia CEO Hans-Peter Res­sel at the sign­ing of a mem­o­ran­dum of col­lab­o­ra­tion in Kuala Lumpur yes­ter­day.

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