MISC Integrated Logistics Sdn Bhd targets 25% take-up rate
MISC Integrated Logistics Sdn Bhd (MILS), a wholly owned logistics arm of MISC Bhd, is targeting an occupancy rate of 20% to 25% for its cold hub facility once it becomes operational in July.
MILS is a one-stop halal logistics hub with a free commercial zone status that provides ocean freighting, distribution, freight forwarding and warehousing services.
Located in Pulau Indah, Port Klang, the hub is designed to cater to fast moving consumer goods.
A bird’s eye view of the facility in Pulau Indah, Port Klang. Inset is Hilmi Mohd Nashir.
Managing director and CEO Hilmi Mohd Nashir said MILS had signed a service agreement with its first customer, Prima Agri-Products Sdn Bhd last Tuesday for its cold hub facility.
“The agreement with Prima Agri creates a milestone for the company. Its strong halal portfolio gave us a good start for our cold hub facility and its specialisation,” he told StarBiz.
The maximum 25% of the expected occupancy rate would translate into 2,500 pallet positions or storage space to be filled up. Next year, MILS aims to achieve an 80% occupancy rate for the facility.
Prima Agri senior executive director Hennie Coenraad said the company would be looking at an initial monthly volume of 1,000 metric tonnes of raw meat and manufactured products to be stored and to be value added at MILS.
“We import meat from Australia and New Zealand to be manufactured into products such as beef patties and sausages.
“The MILS facility will be our inventory storage area for our raw and processed products as well as other value added activities.
“We are interested in MILS for its duty free, world-class facility which provides the best cold room logistics service in the country,” he said.
Hilmi said MILS' vision was to be the largest specialised halal cold and chill facility in the region through its joint venture with ETB Seafrigo, a France-based company.
The MILS-Seafrigo-ML Network joint venture would manage a specialised halal cold chain facility that comprises 10,000 pallets positions for its frozen area with temperature between -18°C and -25°C, as well as 1,000 pallets positions for chill area with temperature between 0°C and 5°C.
The facility will also have a laboratory, work area for value added activity as well as sterilisation and decontamination services.
“The joint venture with Seafrigo, with its strong influence in the Europe market, will open doors for our customers to sell their products there.
“We treat our customers as business partners. If we assist them in enhancing their business, we will also benefit from their growth,” he said.
For the dry area, Hilmi said, MILS had already reached 50% occupancy rate since the company was operational in late 2005.
“For both facilities (cold and dry), we are currently talking to few potential local and foreign customers, in line with our mission to generate more revenue this year.
“We generated quite a decent income last year due to our focus on investment activities.
“This year, we are not going to make any more investments but concentrate on the operation of our facilities,” he said.
Last year, MILS invested about RM150mil, of which RM90mil was for the dry area, another RM50mil for the cold facility while the remaining amount was for other ancillary investments.
On expansion plans, MILS had only used slightly less than 50% of the 40-acre land allocated and would add more facilities in the future.
MILS is a one-stop halal logistics hub with a free commercial zone status that provides ocean freighting, distribution, freight forwarding and warehousing services.
Located in Pulau Indah, Port Klang, the hub is designed to cater to fast moving consumer goods.
A bird’s eye view of the facility in Pulau Indah, Port Klang. Inset is Hilmi Mohd Nashir.
Managing director and CEO Hilmi Mohd Nashir said MILS had signed a service agreement with its first customer, Prima Agri-Products Sdn Bhd last Tuesday for its cold hub facility.
“The agreement with Prima Agri creates a milestone for the company. Its strong halal portfolio gave us a good start for our cold hub facility and its specialisation,” he told StarBiz.
The maximum 25% of the expected occupancy rate would translate into 2,500 pallet positions or storage space to be filled up. Next year, MILS aims to achieve an 80% occupancy rate for the facility.
Prima Agri senior executive director Hennie Coenraad said the company would be looking at an initial monthly volume of 1,000 metric tonnes of raw meat and manufactured products to be stored and to be value added at MILS.
“We import meat from Australia and New Zealand to be manufactured into products such as beef patties and sausages.
“The MILS facility will be our inventory storage area for our raw and processed products as well as other value added activities.
“We are interested in MILS for its duty free, world-class facility which provides the best cold room logistics service in the country,” he said.
Hilmi said MILS' vision was to be the largest specialised halal cold and chill facility in the region through its joint venture with ETB Seafrigo, a France-based company.
The MILS-Seafrigo-ML Network joint venture would manage a specialised halal cold chain facility that comprises 10,000 pallets positions for its frozen area with temperature between -18°C and -25°C, as well as 1,000 pallets positions for chill area with temperature between 0°C and 5°C.
The facility will also have a laboratory, work area for value added activity as well as sterilisation and decontamination services.
“The joint venture with Seafrigo, with its strong influence in the Europe market, will open doors for our customers to sell their products there.
“We treat our customers as business partners. If we assist them in enhancing their business, we will also benefit from their growth,” he said.
For the dry area, Hilmi said, MILS had already reached 50% occupancy rate since the company was operational in late 2005.
“For both facilities (cold and dry), we are currently talking to few potential local and foreign customers, in line with our mission to generate more revenue this year.
“We generated quite a decent income last year due to our focus on investment activities.
“This year, we are not going to make any more investments but concentrate on the operation of our facilities,” he said.
Last year, MILS invested about RM150mil, of which RM90mil was for the dry area, another RM50mil for the cold facility while the remaining amount was for other ancillary investments.
On expansion plans, MILS had only used slightly less than 50% of the 40-acre land allocated and would add more facilities in the future.