PENANG’S logistics sector is set to get a shot in the arm with the revival of a warehouse complex project in Batu Maung on the island.
The Dynaview warehouse complex, which was built over a decade ago and not fully utilised, is set to attract reverse logistics players, freight forwarders and small and medium enterprises (SMEs) in the electrical and electronics (E&E) supply chain.
(Reverse logistics is a part within logistics that is engaged in the collection of spent and discarded products, packaging and transport materials, returned orders and such).
The Northern Corridor Implementation Authority (NCIA) is in discussions with Dynaview Sdn Bhd, the owner and operator of the warehouse complex on ways to promote the use of its warehouses.
The warehouse complex is located at Penang International Airport’s Batu Maung Air Cargo Complex.
“The ready-built Dynaview warehouse complex has many strengths to attract and house SMEs that are involved in providing logistics suppport to the E&E industry, such as component distributors, reverse logistics companies, test houses and others,” said an NCIA spokesman.
The complex was built by joint-venture company Dynaview, whose stakeholders are the Penang Development Corporation and the Heng Lee Group of Companies (which owns the land on which the complex is sited), about 10 years ago.
The warehouse was meant to house freigh-forwarders as Malaysia Airports Holdings Bhd at the time had wanted to consolidate its cargo complex. The complex has remained largely vacant and today, some 33 out of the total 68 warehousing units are occupied.
The most recent companies to site themselves at the complex are the United States-based World Micro Inc and Palco Inc.
“Owing to its location within the Batu Maung Air Cargo Complex’s Free Commercial Zone, the Dynaview warehouses enjoy minimal Customs formalities compared with the usual industrial estates and even the free industrial zones,” said NCIA spokesman.
“International express courier companies such as UPS, FedEx, DHL and TNT are also located within the same compound, thus providing unrivalled delivery and pick-up cut-off times for shipments within the Asia-Pacific and even the US.
“The availability of skilled manpower is also a given as the area is surrounded by the Bayan Lepas Free Industrial Zones, a highly mature E&E ecosystem, with a ready pool of talent. Putting all these factors together, the Dynaview warehouse complex is highly attractive to those SME players in the E&E supply chain that have a client base within the Asia Pacific and ship heavily with express courier companies.
The NCIA initiative is expected to accrue many benefits, such as up to 250 direct jobs once the complex is fully occupied, and other opportunities for the logistics providers, equipment manufacturers and component suppliers.
“Besides that, the presence of these players will also complement the local E&E industry by providing more outsourcing and component sourcing possibilities, enabling them to reduce costs and transit times.”