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Upbeat Outlook On Halal Logistics

News From : DagangHalal.com (19 Jul 2010)

Container haulier and logistics service provider Kontena Nasional Bhd expects its halal logistics division to contribute between RM7 million and RM8 million, or about 5 per cent, to annual revenue from this year.

Up till May this year, the group handled some 216,000 tonnes of halal products worth RM450 million.

With the growing international demand for halal products, Kontena Nasional, a subsidiary of NCB Holdings Bhd, said it hopes to position itself as the preferred ancillary service provider in the country.

The group hopes to fill the gap in the entire halal production and distribution chain.

Its Petaling Jaya branch was certified as a halal logistics service provider in warehousing and transport by the Department of Islamic Development Malaysia (Jakim) in December last year.

It is now applying for halal certification at three other warehouses in Johor, Penang and Port Klang.

“This move is significant with the increasing demand for halal products with the world halal food industry estimated to rise to US$655 billion (RM2.12 billion) in 2011,” said Kontena Nasional chief executive officer Hood Osman when met at the World Halal Research Summit 2010 in Kuala Lumpur last Thursday.

He said the group is also working together with SME Corp to help enhance small and medium enterprises (SMEs) in their export business, by consolidating their business with Kontena Nasional’s service to lower their logistic cost.

“Some of the SMEs I have met had to use the services of courier providers to export their products, which is expensive. Our group has proposed for the SMEs to let us provide the logistic aspect of the business by consolidating with other SMEs around the area, so we can do a schedule pick-up and they can place their product at our warehouse,” said Hood.

To further grow the business, Kontena Nasional will invest between RM7 and RM10 million until next year to expand its multi conventional trucks to 50 from 25 now to support the halal division.

Services in the package include halal storage and warehousing, both containerised and conventional halal transportation, halal distribution, halal shipping, halal freighting for sea and air cargo, samak service for containers, customs facilities and other halal value-added services. The group has yet to have a projected target on how much this division will govern its revenue in the future but according to Hood, the group aspires to be the country’s primary total logistics provider in the industry, especially in the area of halal trade facilitation.

Last year, it posted a total revenue of RM221 million.

— Business Times

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