Pos Malaysia-Lazada pact to set up e-commerce regional distribution hub

KUALA LUMPUR: A RM60 million e-Commerce Regional Distribution Centre is being established in Sepang, Selangor, via a collaboration between Pos Malaysia Bhd and Lazada (M) Sdn Bhd.

The companies signed a memorandum of collaboration (MoC) yesterday for this purpose.

Pos Malaysia Group CEO Datuk Mohd Shukrie Mohd Salleh said the centre, to be located at the former low-cost carrier terminal, will provide value-added services such as air-sea-land transportation solutions, international transshipment, postal and courier services as well as warehousing facilities, among others.

“The distribution centre can handle 182,000 tonnes of items. We are targeting 34 million items for next year followed by 64 million in 2019,” he told reporters after the MoC signing yesterday.

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

Mohd Shukrie said renovation works are expected to start next week and the centre is slated to begin operations on Aug 31.

“The hub is expected to benefit both international and local e-commerce players, and customers in 30 countries in the AsiaPacific region.

“Concurrently, the collaboration agreement will also see the establishment of a regional e-fulfillment hub based in Sepang,” he added.

Mohd Shukrie said Malaysia Airports Holdings Bhd has allocated two-thirds of the terminal space of about 430,000 sq ft for the hub and 330,000 sq ft for Lazada’s Distribution Centre.

POS Malaysia will foot the infrastructure cost, with Lazada supporting the five-year collaboration with its e-commerce expertise, handling of items and training.

‘’The centre is a significant part of Pos Malaysia’s journey into the region and is an affirmation of our long-standing strategy to provide end-to-end integrated logistics, as part of our growth trajectory in the e-commerce segment,” said Mohd Shukrie.

Ressel said the collaboration would open doors for Malaysian small and medium enterprises to expand their businesses, as well as bring together global businesses to global customers. – Bernama