TASCO Berhad, a Yusen Logistics subsidiary in Malaysia, has reached agreements to acquire Gold Cold Transport Sdn Bhd (GCT) and MILS Cold Chain Logistics Sdn Bhd (MCCL), two cold chain logistics providers in Malaysia. The agreements, subject to approval by BURSA Malaysia, will enable TASCO to significantly expand its cold chain operations in the country. The proceedings are expected to be completed by the end of June.
In Malaysia, demand for refrigerated transportation and cold storage facilities for perishable products, such as fresh produce, beverages and pharmaceuticals, is rising as a result of population growth and increased personal consumption throughout the ASEAN region. In addition, due to anticipated growth of online shopping, increased demand for scheduled deliveries using reefer trucks is also anticipated. Under these circumstances, TASCO will make a full-scale entry into the cold chain logistics segment to support growth and business expansion by combining ocean and air cargo transport with contract logistics.
According to Yusen, GCT is one of the largest cold chain logistics providers in Malaysia. It has 174 reefer trucks and a warehouse storage capacity of about 31,000 sq m, primarily handling frozen and chilled foods. The company adds that GCT manages more than 80% of the domestic share of ice cream distribution.
Yusen also states that MCCL is the tenth largest cold chain logistics provider in Malaysia. It operates chilled and frozen warehouses (about 7,000 sq m) in the area adjacent to Westport of Port Klang. Located near customs and port authorities, the area is also a commercial free zone. To meet the expected rise in increased container handling at Westport, TASCO concluded an agreement to purchase land (around 160,000 sq m) and ambient warehouses (around 31,000 sq m) in the area in addition to the purchase of MCCL.
GCT and MCCL support halal logistics and are capable of coordinating halal logistic services with TASCO, which was acquired by Yusen Logistics in 2015. By doing this, Yusen Logistics expects to make a full-scale entry into the cold chain business in Malaysia, and supplement and strengthen its logistics services.
Source: Yusen Logistics