Selangor: Malaysian automotive shipping and logistics provider Giga Maritime Group (GMG) has announced plans to invest in new IT infrastructure, the expansion and replacement of its fleet, assets and vehicles as well as developing new car terminals.
These investments are vital in order for the group to meet growth demands following the National Automotive Policy (NAP) announcement earlier this year. Malaysia aims to increase its total production of 1.25m vehicles and boost annual exports to 250,000 units by the year 2020.
Datuk Adrian Henry D’Silva is the managing director of Straits Auto Logistics and Giga Car Terminals, both subsidiaries of GMG. He tells Maritime CEO the company has plans to increase the fleet but it will be “in tandem” with the growth of the car distribution market within ASEAN. The company took on the 5,040 unit PCTC Grand Vision in mid-September, taking its fleet to three roros, all of roughly 5,000 units each.
Malaysia’s car shipment infrastructure is in good shape these days, relates D’Silva. There is a car terminal at Westports in Port Klang that has the capacity to handle more than 15,000 cars monthly – both imports and exports. This terminal, named Giga Car Terminal, occupies up to 60 acres of storage facilities including a covered facility to upt o 800 units of cars. It also has PDI facilities available for carmakers to perform their accessorisation or component fitments and pre-delivery inspection.
In a bid to meet the demand for car sales in East Malaysia, GMG has acquired land in East Malaysia – 14 acres in Kota Kinabalu, operated by Kota Kinabalu Car Terminal and 10 acres in Kuching, operated by Kuching Car Terminal, for storage and maintenance, import, export and transhipment of vehicles.
Malaysia also has a sufficient fleet of road car carriers to distribute the vehicles efficiently in and out of the port.
While Giga has remained focused on primarily Malaysian trades, D’Silva says international expansion is something the company might look at in the future.
On the markets, D’Silva admits roro rates have increased just marginally over the past five years while direct costs such as bunkers have leapt.
“Though the profit margins are thin at the moment, owners have been able to enjoy decent profits arising from the increased volume over the past five years,” D’Silva insists. [31/10/14]