77 ANNUAL INTEGRATED REPORT 2021 ADDITIONAL INFORMATION HOW WE ARE GOVERNED REINFORCING SUSTAINABILITY TRAVEL Current Market Strengths • Travel agency backed by one of the largest plantation companies in Malaysia • Experienced travel consultant team • Full-fledged International Air Transport Association (IATA) agent It was a challenging year for the travel industry due to the continued impact of COVID-19 to the tourism sector in Malaysia. The same uncertainties however catalysed a surge in e-commerce which benefited the growth of our KedaiFGV platform, uplifting it as a one-stop centre for FGV products. As there are opportunities for local and international tours as well as potential relaxation on COVID-19 related SOPs for Meeting, Incentive, Conference and Exhibition (MICE), we would like to leverage on our proposition as one of the leading Bumiputera travel agencies as well as one of the preferred Umrah and Hajj service provider in the country. We also established ourselves as the travel solutions provider for workers under the plantation industry. MITIGATING THE YEAR’S CHALLENGES Challenges Action plans Outcomes Transport • Slow market penetration in oil & gas due to limitation in capabilities and dependency on partners • High dependency on internal business and inland transportation business • Created inroads in new services such as cold chain transportation, third-party Logistics (3PL), contract logistics, haulier, e-commerce and record management. By increasing capacity and capability, we can now expand and diversify our market reach, product range, services and client base • Expanded services to carry FMCG products and consumer goods for the O&G Sector, MSM, Delima Oil Products, F&N Coca-Cola, BERNAS and Petronas Chemical Malaysia • Explored new markets at southern region on POME businesses such as Pasir Gudang Edible Oil (PGEO), Vance Bioenergy Sdn Bhd, and Kuala Lumpur Kepong Berhad (KLK) • Awarded contracts from MARDEC, Sinergi, BERNAS, Narsco, MSM and Felcra • Haulier - Plans to purchase 15 prime movers, three side loaders and skeleton trailers, and in the midst of obtaining permits from Agensi Pengangkutan Awam Darat (APAD) • Cold chain transportation services - Started operations with 10 units of trucks on lease basis • 3PL - Awarded contract to deliver MAN’s spare parts • Expanded oil & gas market via inland transportation • Appointed as an ad-hoc transporter for Coca-cola Bottlers Malaysia Sdn Bhd Bulking • Lack of presence in international ports/ hub • Market shift to bulk containerisation • Competition from other terminals/ ports reduced market shares (i.e. better vessel berthing facilities or deep draft) • Refineries given direct access to jetty and reduced dependency on independent terminal • Natural gas tariff hike • Ongoing local and overseas business expansion plans to increase our presence • Collaboration with strong partners to expand market share • Continuous efforts for collaboration with port operators i.e. Tanjung Langsat Port and Johor Port Berhad to obtain priority and facilitate FGVJB Group • Improved facilities and services to build customer confidence in our storage solutions • Provided tailored packages, enabled take-up sizeable consignments and provided competitive rates to strengthen customer base (retain existing customers and attract new customers) • Implemented an effective cost control programme for variable costs (fuel, repair & upkeep, electricity, water, overtime) • Initiated renewable energy business portfolio at Langsat Bulkers on handling of POME and Waste Oils handling, including UCO • Exploration of business collaboration with a palm oil key player for both local and overseas projects on storage terminals and warehouses • Warehouse expansion of 15,000 MT capacity, to accommodate additional demand from customers in FGV Grains Terminal • Extended Bursa’s Port Tank Installations at Lahad Datu Bulking Installation (LDBI) in October 2021. Upgrading bulking facilities at LDBI to ensure operational activities are uninterrupted and efficient • FGVJB Group added four new export stainless lines to Wharf No 2 to handle premium products efficiently
RkJQdWJsaXNoZXIy NDgzMzc=