Xin Hwa to ride on boom for warehousing space, recovery in logistics services as economy reopens
25 Oct 2021
Integrated logistics services provider Xin Hwa Holdings Bhd is upbeat on its outlook ahead, underpinned by the prevailing warehousing boom as well as recovery in logistic services on the back of economy reopening.
Managing director Ng Aik Chuan said it is targeting to commence operations of its new Shah Alam e-fulfillment centre (pix) by end of this month. Timing of this new capacity is just opportune to seize the booming demand for storage space.
“It will add another 300,000 sq ft to our existing warehouse capacity 672,000 sq ft. The response has been encouraging and we have already secured a new tenant, which is a large well-known courier services company to take up 70,000 sq ft. We are currently in talks with multiple keen parties to take up the remaining space.”
Located by the side of the Elite Highway, the e-fulfilment centre has seven-storey office and three-storey warehouse. It is a purpose-built building suitable for not only usual storage of cargoes but particularly well-suited for the handling of e-commerce logistics.
“The supply chain disruptions caused by the Covid-19 pandemic as well as the surge in online shopping have heightened the need for warehousing space. This is compounded by the lingering containers crunch, which dampens the movement of cargoes, causing the goods be kept longer in warehouses.”
“The demand for warehousing space is undergoing a strong uptrend. In addition to our own e-fulfilment centre, we are also seizing the opportunities by adding two more warehouses through lease for a faster time-to-market. We secured a new warehouse in Klang with a built-up of 100,000 sq ft in September 2021, and it’s now fully occupied already. Another 44,000 sq ft warehouse in Kuantan will come onboard from November 2021, and we already have a confirmed 100% take up rate for it.”
All in all, the three new warehouses in Shah Alam, Klang and Kuantan will boost Xin Hwa’s warehousing space by 66.1% or 444,000 sq ft to 1.12 million sq ft from the existing 672,000 sq ft. Its existing warehouses are all operating at almost full capacity too.
“Meanwhile, there are optimistic signs of recovery in the demand for logistics services due to resumption of economic activities on the local front stemming from the positive progress in the National Recovery Plan and high vaccination rate. Our land transportation activities are certainly accelerating in pace as compared to few months ago. This uptrend will persist over the next 12 to 24 months as trades normalise.”
Source: The Sun Daily