Teleport chief executive officer Pete Chareonwongsak.
PETALING JAYA: Capital A Bhd
’s logistics arm, Teleport, aims to achieve a record RM1bil in total revenue by the end of 2024, reflecting a 50% annual growth.
“We decided we are going to record more than RM1bil in revenue in 2024, which is a big milestone for us,” said its chief executive officer Pete Chareonwongsak.
He said the company’s Master Plan 2 is a key strategy for achieving this goal by expanding its scale and reach through first- and last-mile services.
“This will allow us to add new volume for smaller businesses that are not served well, either in terms of cost or accessibility.
“By decentralising (operations) and including secondary cities, this will allow us to increasingly build more volume, which then unlocks even more scale and eventually more revenue for Teleport,” he said at a media briefing yesterday.
Chareonwongsak highlighted the group’s focus on maintaining a cost-effective structure, offering services at a marginal cost.
Teleport is not adding more assets to the sky or ground, he said.
Instead, it is making better use of existing assets, which allows it to maintain a low cost structure while still delivering profits and growth.
Highlighting the global air freight market, he shared that approximately 50 million parcels are delivered by air daily worldwide, with 24 million parcels coming from China alone.
“Being able to deliver two million parcels a day would be what we call global scale.”
Teleport’s goal of delivering two million parcels a day is achievable, as it represents only about 4% of the total global market.
In May 2024, Teleport announced its plans to deliver two million parcels a day by 2025.
As of November 2024, Chareonwongsak said the group had delivered about 200,000 parcels per day, with the expectation to reach 350,000 by the end of the year.
“We are extremely confident that we will deliver the two million parcels a day and I think that scale is coming closer now,” he stressed.
Teleport posted a 52% year-on-year (y-o-y) increase in revenue to RM286.6mil in the third quarter ended Sep 30, 2024 (3Q24), from RM189.1mil in the previous year.
Chareonwongsak attributed the higher revenue to a 31% increase in tonnage and a 113% rise in parcel delivery volumes, with over 15.7 million parcels delivered during the quarter, bringing the total for the year to more than 47 million.
The logistics company also reported positive earnings before interest, taxes, depreciation and amortisation (Ebitda) of RM21.9mil in 3Q24.
On a tonnage basis, Teleport posted a 31% y-o-y increase, with belly cargo as the major contributor, accounting for more than 60,000 tonnes.
This was followed by freighters and airline partners at about 9,000 and 6,000 tonnes, respectively.
For the year-to-date period ended Sept 30, 2024, it posted a revenue of RM736.3 million and an Ebitda of RM60.1mil.
Chareonwongsak said Teleport is also looking to grow its third-party airline contributions to reach its goal of delivering two million parcels daily.
Currently, Teleport has about 40 airline partners, and by the end of 4Q24, the group aims to add 10 more.
When asked about the group’s plans to go public, Chareonwongsak said Teleport needs a little more time to demonstrate its strengths as a logistics provider.
