RM1.5 Bilion Logistics Hub in Johor Confirmed by Sanichi and the Partner is PDZ

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RM1.5 Bilion Logistics Hub in Johor Confirmed by Sanichi and the Partner is PDZ


Sanichi Technology Bhd today told the New Straits Times (NST) that the company will develop a regional e-commerce logistics hub in Johor, that will cost over RM1.5 billion in a partnership with PDZ Holdings Bhd.

The NST reported that the logistics hub is designated to handle activities related to transportation, separation, coordination and distribution of goods for local and international transit, similar to Alibaba Group, and will target supply-chain players. The English daily had seen a document which showed that the hub will be developed over 234 acres in Desaru, Kota Tinggi.

Both PDZ and Sanichi will jointly apply for approval from the relevant government agencies in Johor to develop the hub. The NST quoted Sanichi group managing director Datuk Sri Dr. Pang Chow Huat confirmed that the company is planning to develop the e-commerce logistics hub with PDZ. Pang said the logistics hub is a mixed-development, comprising an e-commerce center, a distribution center, warehouses and a transit center and that "it will run into several billion ringgit."

He said both PDZ and Sanichi plan to develop the logistics hub to ride on the exponential growth in the e-commerce business across Asia. We have been saying since last week that something is happening in PDZ as the stock has been rising steadily with 1.33 billion shares traded last Wednesday and close to 950 million shares traded on Friday.

We did mention PDZ partnering Sanichi to develop a regional logistics hub in Johor, that will cost over RM1 billion and this has turned out to be true. We also mentioned that Tan Sri Syed Mokhtar Albukhary has been buying shares in PDZ and now we hope this is also true. We believe Syed Mokhtar could be eyeing a controlling stake in PDZ to expand his logistics empire.



PDZ is an interesting company with a lot of growth potential. The company is involved in the container liner business. According to its website, it operates six vessels that cover domestic and regional trade between Malaysia, Brunei, Singapore and Myanmar. 

Just recently we wrote that PDZ has won a RM600 million contract from a big e-commerce platform operator in China. The Chinese operator could be Alibaba Group Holding Ltd or Tencent Holdings Ltd who currently dominate the China e-commerce market with platforms such as Taobao and JD.com Inc.

Is this why PDZ wants to build the e-commerce logistics hub in Johor to support its existing and new businesses? Well even if that is the case, PDZ is moving in the right direction as the logistics business worldwide is booming because of the Covid-19 pandemic.

The stock has increased from nine sen on July 7 to its closing price of 24 sen today. The stock rose 3 sen or 14.63 per cent higher today, and a total of 581 million shares were traded today. We think the stock will rise again tomorrow to above 30 sen given the NST news report which confirmed the logistics project.

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