KUALA LUMPUR: MMAG Holdings Bhd's aviation arm, MMAG Aviation Consortium (MAC) Sdn Bhd, has formed a joint venture (JV) with two companies from Macau for the oceanic transhipment hub it has set up in the Cainiao Aeropolis eWTP Hub at the Kuala Lumpur International Airport (KLIA).
The two companies are Asia Express Ltd and Suniao Supply Chain Sdn Bhd, the company said in a statement.
Asia Express, a cargo sales agent for airfreight companies operating in China and Malaysia, is taking up a 20 per cent stake in the JV. Suniao, a logistics company that focuses on the cross-border e-commerce market from China to Southeast Asia, will hold 10 per cent.
Woo Kam Weng, the appointed chairman of MAC, said the establishment of the oceanic transshipment hub is a strategic response to the escalating demand for live seafood in Asia and China
"Through this hub, we are creating a gateway for Malaysian and regional seafood to access vast new markets, bolstering trade and economic growth," he said.
Woo said the Asian market, led by China, has demonstrated an insatiable appetite for live seafood, reflected in a substantial increase in import and consumption rates.
China's seafood consumer market alone crossed the US$80 billion mark in 2022, with projections soaring to roughly US$130 billion by 2028, according to a report by Statista.
This rise accompanies China's shift to becoming a net importer of seafood after a significant 30 per cent increase in imports, signaling a historic moment in the seafood trade and an opportunity for regional suppliers.
The Chinese seafood market, having reached RMB321.7 billion in 2020, is expected to surge past RMB400 billion in 2023, showcasing the vast market demand and commercial potential within the country, based on an article on CAHarborFood.
MMAG said the oceanic transshipment hub serves as a conduit for this demand, offering a streamlined route for local and regional seafood products to enter these lucrative markets.
Spanning 26,000 sq ft, the hub is outfitted with specialised fish tank working areas and cold storage facilities.
"The synergy between our partners will leverage their established networks, particularly in China, to ensure that the oceanic transshipment hub not only meets but exceeds expectations in servicing the demand for premium seafood in Asia," added Woo.