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PKT Logistics Group Sdn Bhd, a total logistics service provider, plans to invest RM1 billion over the next five years, to increase its warehousing area to five million sq ft from the current one million sq ft, particularly in the regional economic corridors in Malaysia.

PKT Logistics have invested in warehouses focusing on environment-friendly elements with globally recognised security features, namely, “The Waves” and “The Ship.” Another warehouse, “The Lighthouse” is expected to be ready next year.

The total investment for the three warehouses amounted to US$50million (RM160 million).

PKT Logistics had built about 780,000 sq ft warehouse space in Shah Alam and another 200,000 sq ft warehouse in Rantau Panjang, Group Managing Director and Chief Executive Officer, Datuk Michael B.Y. Tio said at the company’s Hari Raya open house celebration on Saturday.

Datuk Jalilah Baba, the former Director-General of the Malaysian Investment Development Authority (MIDA) who is PKT Logistics new Group Chairman, said local logistics companies needed to grow and expand fast to take advantage of the multinational corporations (MNCs) that are investing in Malaysia, noting that the service providers would need to move up to offer 4PL and 5PL services to these companies.

PKT is able to provide 4PL services that include sub-assembly, procurement and consultancy, besides transportation and distribution of goods.

Some 80% of the company’s turnover is from the automotive logistics business while the balance from the fast moving consumer goods (FMCG) segment.

Going forward, the company which is targeting for a listing on Bursa Malaysia next year, is turning its focus to grow its revenue from FMCG to some 40% by 2013.

Article adapted from NST Business Times and StarBiz 26 Sept 2011.

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