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To take advantage of the expansion
in demand for warehousing and distribution
activities, Freight Management Bhd is developing
a 200,000sq ft warehouse facility.
The company expects its modern and
state-of-the-art warehouse facility to be
operational by third quarter of 2007 and attract
customers which are outsourcing their total
logistics needs.
“Our third party logistics solution is expected
to contribute substantially to the Group’s
revenue in the coming years,” said the chairman
of Freight Management Holdings Bhd, Datuk Dr
Haji Noordin bin Haji Abd Razak in 2006 Annual
Report..
The new warehouse facility will complement the
groups various logistics services.
As for the rail freight service, Noordin said
the group will focus on cost rationalization and
yield management to increase profitability in
the rail freight services.
Freight Management as pioneer in operating this
service between Malaysia and Thailand since
1999, currently operating four times weekly
service for both northbound and southbound
traffic.
The group also received substantial increase in
profitability from export consolidation services
due to improved efficiency in stuffing
containers; thereby achieving higher overall
gross profit margin of 19.9 per cent against
18.3 per cent in financial year 2005.
LCL consolidation service is now expanded to
include some new destinations such as Fremantle
in Australia, Nhava Sheva in India, Dalian,
Qingdao and Ningbo in China, as well as
increased frequency to existing ports.
The Group is also constantly looking into
participating in tenders from multinational
companies that are outsourcing their logistics
needs.
We are continuously introducing innovative sales
campaign to offer competitively priced services
to our customers, thus keeping us ahead of
competitions.
The Group will continue to market our FCL
service aggressively, both locally and
internationally.
With our substantial FCL volume, we are
confident that we are able to leverage for a
competitive rate with the shipping lines, thus
according us an edge in our marketing efforts,
said Noordin.
The current financial year ended 30 June 2006
was an excellent year for FMH as the Group
registered a revenue growth of 13.8 per cent.
The Group’s revenue improved to RM160.8 million
compared to RM141.3 million in the previous
financial year. The main contributors to the
positive results have been an increase in sea
freight, particularly to the Asian ports.
Sea freight volume increased to about 60,000
teus compared to about 57,000 teus in the
previous financial year.
In spite of the many challenges in the
airfreight industry, particularly the increasing
fuel cost, the Group is confident that the
impact will be minimal as evident in the
financial year under review.
The Group has stepped up aggressive marketing
efforts in promoting direct airfreight
consolidation services, kicking off with Bangkok
as the first destination. |
