Container haulage volume for Swift Haulage has increased by 4% year-on-year, but rates dropped by 7% year-on-year due to changes in customer mix and shorter trips. Meanwhile, land transportation trips rose by 16% year-on-year, aided by the Watt Wah subsidiary, said Maybank Investment Bank Bhd (MIBB) in a recent report.
Freight forwarding jobs and rates declined by 6% year-on-year and 17% respectively. On new warehousing capacity which expanded in financial year 2022, two warehouses which were PKFZ warehouse and Tebrau warehouse, were underutilized, at 30% and 60% respectively.
This is due to transitioning of leased to own warehouse and reduced volume from a key customer.
Following its construction completion of three warehouses in financial year 2022, Swift Haulage aims to further expand its warehouse capacity by converting its existing vacant land. It plans to add 400k sq ft of new capacity, approximately 30%, by financial year 2024.
This includes expanding the fully utilized Mak Mandin warehouse in Penang by 150k sq ft and constructing a new 250k sq ft warehouse in Westports, with both targeted for completion in the first half of 2024.
Additionally, the group plans to convert a 5-acre land in Westports for on-dock depot operations in response to the increasing demand for container depot services, expected to commence operations by quarter two 2023.
While Swift Haulage has positioned itself for long-term growth, the company faces short-term challenges due to weakened demand and global macroeconomic conditions.
The success of its growth drivers and the utilization of new warehouse capacity will depend on market conditions and the company’s ability to adapt to changing circumstances.
