KUALA LUMPUR: PKT Logistics Group Sdn Bhd will invest RM70mil more in its phase two expansion plan to build a state-of-the-art warehouse in line with its strategy to tap the fast moving consumer goods (FMCG) market.

Managing director and group chief executive officer Datuk Michael Tio said the 365,000 sq ft warehouse, dubbed “The Waves”, was expected to be ready by next August.

“We have already secured a contract from a FMCG multinational corporation (MNC) to rent the entire warehouse plus a double-storey office facility. The MNC will make Malaysia as its Asean manufacturing hub,” he told reporters last week when PKT signed an agreement with ECnet (M) Sdn Bhd for integrated e-logistics solutions.

The signing was witnessed by Malaysian Industrial Development Authority director of logistics and regional division Tan Piak Bong. Tio said The Waves would be situated next to PKT’s first phase of expansion, a logistics hub dubbed “The Ship”, which had just been completed. “The Ship, which costs RM50mil, sits on 4ha in Shah Alam and its operation will focus on third-party logistics services for a mix of automotive, food and beverages as well as FMCG customers.

“The Ship consists of 30,000 sq ft of our new corporate headquarters and 150,000 sq ft of ambient warehouse,” he said. Tio said PKT decided to diversify into FMCG logistics services from its current concentration on auto-logistics as the FMCG sector managed to record growth in the challenging economic climate.

“Revenue of logistics services for the FMCG sector in Malaysia totalled RM2bil annually where a large chunk is dominated by multinational logistics players,” he said, adding that with the investment, the company hoped to secure a bigger share of the market. Tio said the group was now fully equipped to increase its FMGC business operations to 40% of total sales by 2011 from 20% currently. Automotive logistics is its core business.

Meanwhile, under the agreement with ECnet, PKT would invest RM2.5mil over the next three years in integrated e-logistics solutions which include a supply chain suite and info-warehouse management system

ECnet is an information technology solutions company that focuses on providing software-as-a-service in areas such as supply chain management, mobility and enterprise solutions. Tio said it was significant for a local company to have a strong IT system to support its operation to gain a competitive edge against multinational logistics players.

“Our current total logistics solutions, via freight forwarding, customs brokerage, haulage and trucking, will further enhance our services to the FMCG sector. Coupled with our new logistics hub, the software and infrastructure aspects have been addressed to propel us further,” he said.