FGV Annual Integrated Report 2019

62 FGV HOLDINGS BERHAD LOGISTICS & OTHERS KEY HIGHLIGHTS 6.02 Million MT TRANSPORT VOLUME In 2019, we recorded transport volume of 6.02 million MT compared to 5.18 million MT in 2018 following higher tonnage carried for external customers. 8.82 Times STORAGE TANK TURNOVER RATE Our bulking volume increased to 8.42 million MT in 2019 compared to 7.01 million MT in 2018 as a result of higher contributions from major customers. The higher bulking volume led to a rise in our storage tank turnover rate to 8.82 times from 7.34 times in 2018. Total Integrated Logistics Solutions Provider • We now perform a variety of end-to-end logistics-related service activities like air, ocean, road and rail transportation, warehousing and other value-added services. • New services being offered include becoming the third-party logistics provider for our FMCG arm, as well as hajj cargo business. Intellectual Property • Implemented the elektronik Rangkaian Maklumat Ladang (eRML) Modular Online Plantation Management System (OPMS) in two internal companies (FGV Agri Services Sdn. Bhd. and Pontian United Plantations Berhad) and one external company (Felda Technoplant Sdn. Bhd.) and the Integrated Logistics Distribution System (ILDS) Mobile for FGV Transport Services Sdn. Bhd. drivers to reduce operational costs. • FGV Prodata Systems Sdn. Bhd. also have other intellectual properties that are used within the Group such as the Palm Oil Mill Integrated System (POMIS), Settler, Land & Plantation (SLP), Sistem Maklumat Koperasi Bersepadu (SMKB), Weighbridge Management System (WBS), etc. BUSINESS PERFORMANCE MANAGEMENT DISCUSSION & ANALYSIS STATEMENTS AND ANALYSIS OPERATIONS IN PAKISTAN Since the 1980s, FGV Holdings Berhad (FGV) has had a presence in the Pakistan market through FELDA, which started its business there with the sale of edible palm oils. FELDA later built on this by signing a memorandum of understanding in 1993 with the Westbury Group (Westbury) to venture into palm-related industries. To date, the partnership between FGV, Westbury and two other Malaysian partners has created four Pakistan-based companies that operate within the palm and other edible oils value chain. One of these companies is F.W.Q. Enterprises (Pvt.) Ltd., a subsidiary of FGV. Overall, FGV’s Pakistan venture has continuously provided dividend income of more than 6% annually to the Group. This solid performance is largely due to having a good relationship with a strong and well-connected local partner, investment in a strategic location (Port Qasim), control of the value chain from the jetty to the marketing of edible oils and the strong demand from major palm oil and food industry players in the region.