Value Creation Is The Bedrock Of Our Business 70 FGV HOLDINGS BERHAD Group Business Review TRANSPORT Overview Our Transport Division is instrumental in the Group’s aim of becoming a total logistics solutions provider in Malaysia. With a history of over 47 years and currently equipped with more than 600 units of mixed fleet vehicles, we have expertise in Inland Transportation (liquid tankers, cargo trucks, cold chain trucks, side curtains, roro, haulage), Contract Logistics (3PL), Multimodal Transport Operator (MTO), Freight Forwarding, and Special Projects (handling of Hajj pilgrims’ baggages). In 2022, through our subsidiary, FGV Transport Services Sdn Bhd (FGVTS), we increased our transportation volume to 6.33 million MT from the 5.71 million MT reported last year. The improved tonnage carried was in tandem with the increase in CPO and PK productions and higher tonnage of FFB and FMCG products. During the year, we secured new contracts with Padiberas Nasional Berhad (BERNAS), TNB, Johor Port and others that strengthened our portfolio and expanded our reach. These contracts have not only bolstered our bottom line but also opened up new opportunities to enhance our operations and service offerings. We launched a mobile application named Angkut.asia as a value-added service that functions as a baggage tracker for Hajj pilgrims. Outlook Looking ahead, the global logistics market is projected to grow at a Compound Annual Growth Rate (CAGR) of 6.8% from 2022 to 2030, driven by the increase in cross-border trades and the booming e-commerce sector. This presents numerous opportunities for growth in areas such as inland transport, MTO, haulage, Oil & Gas (O&G), 3PL, cold chain, and courier services. However, to capitalise on this growth, we will need to adopt the latest technologies to maintain operational efficiency, especially in warehousing, where innovative solutions will be required. We plan to redevelop our current warehouse in Shah Alam into a Central Distribution Centre. In addition, we plan to expand 3PL into external markets and seek out synergistic acquisitions as part of our strategic growth plans. In the MTO space, we will intensify our approach involving Project Logistics, specialised products and O&G distribution. We will also increase our focus on supply chain operations through ancillary logistics including cold chain, haulage, e-commerce, side curtains and baggage handling for the Hajj & Umrah segment. INFORMATION TECHNOLOGY Overview Our IT Division contributes to the development of our reputation as one of the leading system integrators and solution providers in Malaysia. Over the years, we have established a successful track record in managing end-to-end IT solutions that are suited to the requirements of our clients. Based on our status as a Value-Added Reseller and SAP Gold Partner, as well as the numerous Intellectual Property (IP) rights and patents that we own, we are able to meet our customers’ needs effectively. Through our IT arm, FGV Prodata Systems Sdn Bhd (FGV Prodata), we have intensified our momentum in IT advancement to meet the growing demand for digital solutions. FGV Prodata creates and maintains its own IPs to support FGV’s upstream and downstream businesses, as well as its logistics and supply chain operations. These solutions, including the Warehouse Management System (WMS), Palm Oil Mill Integrated Automation System (POMIS), and Integrated Logistics & Distribution System (ILDS), are tailored specifically to meet the needs of FGV’s ecosystem. Additionally, our weighbridge system, PROWEIGHER, has been officially recognised and certified by the National Metrology Institute of Malaysia (SIRIM-NMIM) for meeting Malaysia’s standard requirements. FGV Prodata has also been appointed as one of the Designated Universal Service Providers (DUSPs) by the Malaysian Communications and Multimedia Commission (MCMC) to provide and implement the Phase One Jalinan Digital Negara ( JENDELA) nationwide. Outlook The IT industry is expected to make significant advancements in the near future, particularly in areas such as Artificial Intelligence (AI), big data, cloud computing and the Internet of Things (IoT). The Division aspires to add value to FGV and FELDA Groups and external customers by driving the implementation of new technologies, applications and innovations. To achieve this goal, it will strive to serve as a central technology architect and implementer for key business segments such as telecommunications, defence and public sector. Furthermore, the Division seeks to expand into cyber security in response to the growing concerns over data privacy and protection, while strengthening our change management capabilities. 5.71 2021 2020 5.72 6.33 2022 Transport Volume (Million MT)
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