BUKIT Kayu Hitam in Kedah is finally restoring its vitality after spending two years in hiatus during the Covid-19 pandemic.

The cargo traffic that traverses through Bukit Kayu Hitam’s Immigration, Customs, Quarantine and Security complex (ICQS) contributes significantly to the RM105.4bil trade value between Malaysia and Thailand, where the various Malaysia-Thai land borders contribute 70% to this.

Despite the dip in trade activities back in 2019, Malaysia’s leading logistics player PKT Logistics Group decided to buck the trend and invest RM200mil to build One Northern Hub – a 20ha (50 acres) logistics hub right next to the Bukit Kayu Hitam ICQS.

This project houses a service area, retail, education, warehousing and inland port under one sustainable hub. With various world-class infrastructure in place, it will become an economic catalyst for the Delapan (formerly Kota Perdana) Special Border Economic Zone (SBEZ) upon completion starting from the first half of 2023.

PKT chief marketing officer Kuan Eu Jin explains that Bukit Kayu Hitam’s strategic location is a key factor in facilitating southern Thailand exports such as fibreboard, processed food and rubber.

Fuelling confidence for the future growth of cargo movement, rubber glove manufacturer Hartalega has announced a RM7bil in investment to build a factory just next to One Northern Hub.

Spurring business, income levels

One Northern Hub is made up of three parts – Blackwood Complex, Blackwood Forest and an inland port.

“We could just build warehouses, but in the long term, a concept hub brings more value to the land when it creates business, employment and education opportunities,” said Kuan.

Blackwood House’s architecture is modelled after the climatic feature of a Malay kampung house, or Rumah Tiang 12. The entire complex provides parking lots, service area, logistics and maritime institute as well as office spaces and residences.

Blackwood Forest is a logistics hub that provides warehousing services. Meanwhile, the inland port manages north and south-bound containers.

“The projected GDP impact is up to RM843mil per annum. One Northern Hub is here to spur economic activities and improve the surrounding community’s income level,” Kuan added.

Logistics and transport base

Bilateral trade with Thailand is projected to hit RM124bil by 2025 while cross-border trade will overtake marine transport as road transport and cross-border travel become more efficient.

Therefore, having the right infrastructure such as those provided by One Northern Hub will greatly spur the growth in this area.

Furthermore, a modern, comfortable facility will further enhance the desirability of its day-to-day users, especially for truck drivers.

“Besides providing office spaces for local and international freight forwarders and transport companies, Blackwood House most importantly provides a comfortable and convenient working environment, including for our most valued group of users – the truck drivers,” said Bukit Kayu Hitam ICD marketing deputy general manager Victor Ch’ng.

Blackwood Complex will feature PKT’s signature Truckers’ Lounge – the latest iteration of PKT’s existing facilities, which in its latest form is inspired by the Malaysian Airlines Golden Lounge.

Complete with shower rooms, massage chairs and pool tables, this facility offers long-haul truck drivers a comfortable space to recharge before safely hitting the road again.

Part of the hub’s catalytic effect is to attract talents to Bukit Kayu Hitam and develop the area.

“Employers who choose to be based here can provide a wholesome working environment. Blackwood Complex will add a human touch to the Delapan SBEZ by incorporating lifestyle amenities such as food and beverage, entertainment, an educational institute and even a gym,” said Ch’ng.

To attract talents from far and wide, the Blackwood Suite Residences located behind the office block provides 168 units of serviced apartments with studio and two-bedroom layouts.

The logistics firm has also taken into consideration the need for green spaces and will dedicate almost 1,858 sq m (20,000 sq ft) for a lush garden atrium where tenants and residents can socialise, interact and inspire each other.

“This will aid in creating a healthy and vibrant community and workforce to boost productivity and ensure business sustainability, not just for the hub but for Bukit Kayu Hitam,” added Ch’ng.

Enhancing cross-border tourism When crafting the components to be housed in the hub, PKT also sought input from the public on what amenities they desire and one of the most popular demands was parking space for tourists entering Thailand.

Therefore, Blackwood House will be flanked by two multi-storey carparks that can house up to 460 vehicles.

Kuan said this would be a perfect one-stop centre for tourists to leave their cars safely, freshen up, change currency and pick up essentials from the retail shops before they cross the border into Thailand.

“Blackwood complex will have public toilets, a food court, souvenir shops, money changers and a convenience store. Long-haul buses will also be welcome to make a pit stop for food and petrol,” he added.

For sales enquiry, call Victor Ch’ng (012-438 4797) or go to www.pktgroup.com.

 

Containers, trucks and warehouses may be standard set components in a logistics company, but for home-grown PKT Logistics Group, you’ll find facilities like a comfortable truckers’ lounge, food court and green spaces a staple in all its logistics hub.

“For us, moving goods accurately to their destination is only a baseline requirement,” said group chief executive officer and managing director Datuk Seri Dr Michael Tio.

“Our ultimate mission is to be a socially responsible company. That means creating an enjoyable work place for our staff, taking care of the environment and sharing our success with the community.”

Based in Shah Alam, PKT was a humble family business founded nearly 50 years ago. Since Tio took over the business from his father, he has transformed the operations from merely transporting goods to the present model – building sustainable logistics hubs that bring together logistics solutions, education, food and beverage, lifestyle and a talent ecosystem.

Take its newly completed One Auto Hub in Penang for example.

Located in the heart of Batu Kawan Industrial Park (BKIP), the hub consists of FIABCI Award winning warehouse The 12 Waves, The Ship Campus where its education subsidiary Peninsula College Malaysia is headquartered, and a student residence.

Tio’s out-of-the-box approach towards a traditional sector has turned the company into a sought-after catalyst in new developments. “PKT is usually the first to enter a new development and others follow. Our concept hubs boost investors’ confidence in the location,” he said.

Human touch among machines

Tio said that BKIP is brimming with potential as local and foreign investors are flocking there to set up their plants.

While the obvious demand is in warehouse spaces, that is just a small part of the investors’ checklist when deciding where to put their money, he said.

“After all, factories and machines are manned by humans,” he highlighted.

For investors, ensuring a steady talent pipeline is key to keeping businesses up and running – and that means being able attract, train and upskill their employees.

Similarly, high-quality talents demand for career advancement and a comfortable living environment.

“Our hubs bring a human touch to industrial parks. Employees are not robots. People want a nice place to dine, work out at the gym, socialise or learn a skill, but if all these amenities are not in the vicinity, living conditions become less attractive.

“How then would everyone in the industrial park keep their talents?” he pointed out.

Therefore, the group is not stopping at running a logistics business, but is also determined to create a talent eco-system as part of its efforts to make BKIP a vibrant place for work and study.

“We already have an established college. Now we are building a skills training centre equipped to deliver the IR4.0 solution syllabus certified by Bosch Rexroth.”

Spurring economic growth up north

Meanwhile, up north in Bukit Kayu Hitam, Kedah, the group has invested RM200mil to build One Northern Hub, slated for completion in the first half of 2023.

This hub consists of the Blackwood Complex, Blackwood Forest and an inland port that aims to receive business from southern Thailand.

Blackwood House’s architecture is modelled after the climatic feature of a Malay kampung house or Rumah Tiang 12 to be exact.

The entire complex provides parking spaces for Thai-bound visitors, a rest and relaxation centre, logistics and maritime institute as well as office spaces and residences.

Blackwood Forest is a logistics hub that provides warehousing services.

“We could have just used the land to build only warehouses,” said Tio.

“But with a concept hub, we add value to the plot of land by creating business, employment and education opportunities.

“This spurs economic activities in the area and improves the community’s income level. The projected GDP impact is up to RM843mil per annum.”

The group also took in public feedback and added two multi-storey carparks for people to commute between the Malaysian-Thai border.

Since the announcement of this project, rubber glove giant Hartalega has also invested RM7bil to build 16 manufacturing facilities next to One Northern Hub, a move that can transform the Kota Perdana Special Border Economic Zone (SBEZ) into a vibrant industrial and commercial hub.

Asean’s next logistics hub

While PKT has made it big in the country, it is vying for more prominence in the regional logistics market.

“If Malaysian players can raise its standards in terms of infrastructure, skilled labour, sustainability awareness and become more IR4.0 ready, we are capable of becoming Asean’s next logistics hub,” said Tio

Using Singapore as a benchmark, Tio pointed out that logisticians in the island state earn five times more than those in Malaysia as they manage higher value logistics.

“For Malaysia to move beyond 3PL, we need to professionalise the industry and move up the value chain by doing 4PL, 5PL, 6PL and even 7PL.”

With the vision to expand, Tio is leading the way in changing public perception towards the logistics sector in hopes that more young people see it as a prospective career choice.