KUALA LUMPUR (Nov 1): FGV Holdings Bhd (FGV) has introduced a cold chain transportation service under its logistics subsidiary FGV Transport Services Sdn Bhd to provide delivery and cold storage solutions for temperature-sensitive products and perishable items.

With an initial investment of RM8.3 million, the new business aims to cater to the growing market demand for effective logistics management which ensures proper temperature controls of dairy products, pharmaceuticals, meat, fruits, vegetables, seafood, frozen foods and other products for the domestic and e-commerce sectors, said FGV in a statement on Monday.

FGV group chief executive officer Mohd Nazrul Izam Mansor said the cold chain business segment is the latest initiative to add new revenue streams under the group’s logistics and support businesses sector.

“As at October 2021, FGV has acquired ten 7.5-tonne refrigerated trucks. The group plans to increase the number to 17 trucks of various sizes and loads by 2023 with an estimated investment of RM4 million,” said Mohd Nazrul.

He said FGV is focused on the growing halal food production industry and is leveraging the growing e-commerce market by offering cold logistics solutions to players across the supply chain. 

FGV Transport targets RM3.2 million in revenue for its cold chain services by 2024, the statement said.

Mohd Nazrul highlighted FGV’s capacity to deliver logistics using advanced automation and digital capabilities, such as third-party logistics services (3PL), hubs and spokes, courier and last mile, and multi-functional trucks in various sizes.

“All of FGV’s cold chain vehicles are equipped with global positioning system (GPS) navigation and an integrated logistics distribution system (ILDS) developed by FGV Prodata Systems Sdn Bhd, another subsidiary of FGV. With the implementation of ILDS, all truck movements are tracked in real time to facilitate vehicle traceability and to ensure customers’ products arrive safely in a timely manner,” said Mohd Nazrul.

FGV’s cold chain service also includes a warehouse management system to monitor and optimise its logistics processes, combined with other handheld applications for predictive maintenance and fresh food temperature monitoring.

FGV Transport currently offers its halal product transport and refrigerated trucking service around Klang Valley and expects to make its services available to Johor, Melaka, Perak and Penang with a target of 60% external businesses within six months of operations.