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  24th Oct 2011 - STAR MARITIME

Kontena Nasional to boost IT infrastructure

KUALA LUMPUR: Logistics company, Kontena Nasional Bhd (KNB), is enhancing its information technology (IT) infrastructure in a bid to secure quality clients to enjoy higher margins.

Chief executive officer Hood Osman said KNB’s revenue grew along with the country’s gross domestic product (GDP) for the past four to five years.

However, he said, it was unable to reap good margins.

“The essence is to find more quality businesses. The problem we have is margin. You see higher revenue but it does not mean good margins,” he told Bernama in an interview.

Hood said KNB targeted between RM240mil and RM250mil in revenue this year and RM300mil in 2012.

Last year, the company recorded revenue of RM203mil.

He said most big companies required total logistics services and for KNB to secure this group of clients, it needed to be ready with the infrastructure.

Hood said KNB planned RM85mil for its 2012 and 2013 capital expenditure which will entail prime mover replacement, additional fleet for conventional trucking and IT infrastructure.

Of the amount, he said, RM10mil was for IT infrastructure as the development was crucial to meet today’s customer’s expectations, including faster turnaround, identification of problems and providing solutions.

He said KNB’s expansion plan would increase the fleet size of its conventional trucks to 150 units in the next two years from 55 currently and 405 prime movers from 392 presently.

“We hope that with all these initiatives, KNB will come back to show we are around for the last 40 years and we are living with the time. We are progressing to meet with the demand of the industry, the Government and the global business,” he said.

Hood said KNB needed to diversify itself from a being a transporter to a total logistics solution provider because there were 187 prime mover licencees and nearly 2,000 freight forwarders in Malaysia.

As KNB moved into new business segments, Hood said, container haulage segment would contribute only 40% of the company’s total revenue from 61% last year.

Sixty percent of KNB’s revenue would be contributed by its new segments, namely logistics infrastructure, warehouses, freight forwarding sales, conventional trucking and halal logistics, he said.

“KNB needs to re-model itself to meet the current demand by the global and local trade. It’s currently pushing for more domestic transactions to be on higher level to support the logistics industry,” he said. — Bernama


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