Malaysia’s logistics industry is forecast to grow 9.5 percent to total RM139.7 billion ($46.4 billion) this year, with trade also set to surge by some 6.5 percent to $471.6 billion.
Driven by strong intra-Asia trade growth, government support and its prime geographical location in Southeast Asia, Gopal R, Global Vice President, Transportation & Logistics at Frost & Sullivan, said Malaysia would also benefit from strong foreign direct investments in transport which would see the national logistics industry grow at a compound annual growth rate of 10.2 percent to reach $68.9 billion in 2017.
“Growth of the country’s external trade signifies the growth of the transportation and logistics industry especially for import and export forwarding, air freight and ocean freight-related businesses,” he said.
“To cut down the investment on infrastructure, there is a growing trend of companies outsourcing their non-core function of logistics activities to third parties, which creates the demand for contract logistics services.”
He forecast Malaysia’s total cargo volumes shipped by air, sea and rail would growt at 5 per cent this year to reach 530.67 million tons in 2013. Although some large projects in the oil and gas and infrastructure space would begin in Malaysia this year, most of the emphasis would be on containers and Malaysia’ role as a regional transhipment center.
“Containerized cargo represents more than 70 percent of total cargo throughput by sea in the country; of which, about 47 percent is handled by Port Klang,” he added.
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