Sanichi Technology Bhd has confirmed it is working in partnership with PDZ Holdings Bhd to develop a regional e-commerce logistics hub in Johor, that may cost over RM1.5 billion.
The New Straits Times (NST) reported today that the logistics hub is designated to handle activities related to transportation, separation, coordination and distribution of goods for local and international transit, and will target supply-chain players.
It seems the logistics hub will be similar to the one developed by China e-commerce logistics giant Alibaba Group Holding Ltd in China.
According to the NST report, it has seen a document stating that the hub is expected to be developed over 234 acres in Desaru, Kota Tinggi. It said both PDZ and Sanichi will jointly apply for approval from the relevant government agencies in Johor to develop the hub.
The NST quoted Sanichi group managing director Datuk Sri Dr. Pang Chow Huat confirmed that the company is planning to develop the e-commerce logistics hub with PDZ.
Pang said the logistics hub is a mixed-development, comprising an e-commerce center, a distribution center, warehouses and a transit center and that “it will run into several billion ringgit.”
He said both PDZ and Sanichi plan to develop the logistics hub to ride on the exponential growth in the e-commerce business across Asia.
The e-commerce business for many companies around the world has grown significantly since the outbreak of the Covid-19. Many more people are buying their household goods online or are moving to online shopping as they fear moving about in crowded places.
In fact, not only have we reported that both PDZ and Sanichi are planning to develop a e-commerce hub in Johor, we have also mentioned that PDZ has won a RM600 million contract from a big e-commerce platform operator in China. The Chinese operator could be Alibaba Group Holding Ltd or Tencent Holdings Ltd who currently dominate the China e-commerce market with platforms such as Taobao and JD.com Inc.
We have also said that Malaysian billionaire Tan Sri Syed Mokhtar Albukhary could be eyeing a controlling stake in PDZ to expand his empire.
PDZ is involved in the container liner business. According to its website, it operates six vessels that cover domestic and regional trade between Malaysia, Brunei, Singapore and Myanmar.
The stock has risen by over 200 per cent from nine sen on July 7 to its closing price of 24 sen today, boosting its market capitalisation from RM79.79 million to RM208.35 million.
The stock rose 3 sen or 14.63 per cent higher today, and a total of 581 million shares were traded today.