FGV Introduces Cold Chain TRansportation Services to Meet Increasing Local Demand

One of FGV's 10 refrigerated trucks with a capacity of 7.5 tonnes operating in the Klang Valley

KUALA LUMPUR, 29 October 2021 - FGV Holdings Berhad (FGV) introduces cold chain transportation services under its logistics arm, FGV Transport Services Sdn Bhd (FGV Transport) to provide efficient delivery and cold storage solutions for temperature-sensitive products and perishable items.

With an initial investment of RM8.3 million, the business aims to cater to the growing market demand for effective logistics management which ensures proper temperature controls of dairy products, pharmaceuticals, meat, fruits, vegetables, seafood, frozen foods and other products for the domestic and e-Commerce sectors.

Mohd Nazrul Izam Mansor, Group Chief Executive Officer of FGV said, the cold chain business segment is FGV's latest initiative to add a new revenue stream under the Group's Logistics and Support Businesses Sector.

"As at October 2021, FGV has acquired ten 7.5-tonners refrigerated trucks. The Group plans to increase the number to 17 trucks of various sizes and loads by 2023 with an estimated investment of RM4 million," said Mohd Nazrul, adding that they are also focusing on the halal food production industry which keeps growing year by year.

FGV Transport receives orders to transport customer products including temperature-sensitive and perishable items

Mohd Nazrul said, FGV Transport leverages on the growing e-Commerce market opportunity in this segment and offers cold logistics solutions for industry players, consumers, manufacturers and farmers in Malaysia. The subsidiary targets to achieve RM3.2 million in revenue for cold chain services by 2024.

"At FGV, the qualities that make us an industry leader is our capacity to deliver logistics using advanced automation and digital capabilities. This includes Third-Party Logistics services (3PL), hubs and spokes, courier and last mile, and multi-functional trucks such as tankers, cargos, box vans, curtain sider and refrigerated trucks in various sizes."

"All of FGV's cold chain vehicles are equipped with Global Positioning System (GPS) navigation and an Integrated Logistics Distribution System (ILDS) developed by FGV Prodata Systems Sdn Bhd (FGV Prodata), another subsidiary of FGV. With the implementation of ILDS, all truck movements are tracked in real time to facilitate vehicle traceability and to ensure customer's products arrive safely in a timely manner," he continued.

FGV plans to increase the refrigerated trucks to 17 by 2023 with the investment of RM4 million

A Warehouse Management System (WMS) platform is also provided to allow companies to monitor and optimise logistics processes. Additionally, smart handheld applications such as Barcode Scanning, Order Management, and Inventory Management are also utilised for predictive maintenance and fresh food temperature monitoring.

For starters, FGV Transport offers halal product transportation and refrigerated trucking services around Klang Valley. This service is expected to be expanded to other states such as Johor, Melaka, Perak, and Penang with a target of 60 percent external businesses within six months of operations.

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About FGV Transport Services Sdn Bhd (FGV Transport)

With more than 40 years of ensuring product safety in transit, FGV Transport has built a reputation as an expert in transporting liquid and general cargo such as crude palm oil (CPO), palm methyl ester (PME), palm kernel (PK), palm kernel shell (PKS), palm kernel expeller (PKE), fresh fruit bunches (FFB), empty fruit bunches (EFB) and shredded fibre (SF). For more information, visit www.fgvtransport.com.

FGV Transport has received halal logistics certification from the Department of Islamic Development Malaysia (JAKIM) in December last year for 76 tanker trucks operating at its Pasir Gudang depot in Johor. The halal logistics certification falls under the category of Halal Supply Chain Management System for transportation, and includes transportation services for palm-based liquid products such as crude palm oil, palm kernel oil as well as processed palm oil.