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involving enhancements to our
existing infrastructure and assets.
Refurbishment works of our jetties
in Butterworth which began in
January 2018 have been completed.
We have also purchased prime
movers and container trailers for
our freight-forwarding arm as
part of our fleet replacement and
capacity upgrade programme.
This will reduce the overall costs
associated with downtime and
maintenance to service ageing
assets. We also see our freight-
forwarding arm as a source of
future growth for the division, with
volume and revenue contributions
from this segment increasing 42%
and 29% respectively, y-o-y.
Technology investments have also
been a focus during the year. We
are upgrading our division’s IT
systems by investing in a new tank
farm inventory management system
across our terminals. The solution
will replace the existing software
and will provide a common platform
for all our terminals thereby enhancing internal controls, improving our
global reporting and analysis capabilities leading to improved productivity
and cross-functional efficiencies. In addition, our customers would be able to
access real-time information on the movement and volumes of their stocks.
Outlook
We have come through a challenging year in good shape. Our
businesses have performed well and our financial position is sound.
Looking ahead we are energized by the opportunities within the sectors
we operate in. Given current market conditions, we expect demand for
storage of liquid commodities (especially edible oils) and transshipment
activities to remain robust in this current financial year, but we also
expect competitive dynamics in the sector to intensify. Part of our
challenge for this current financial year will, therefore, be to sustain
the momentum by strengthening our value propositions to clients and
driving underlying organic growth by optimising our existing terminal
infrastructures.
We also see our
freight-forwarding
arm as a source of
future growth for
the division, with
volume and revenue
contributions from this
segment increasing
42% and 29%
respectively, y-o-y.
performance
review
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