MIDF Research said the companies are undertaking feasibility studies for a cold-chain facility in Tebrau, Johor.
PETALING JAYA: Swift Haulage Bhd
’s move to expand its cold-chain warehouse and transportation business to Peninsular Malaysia is being viewed positively by analysts.
The company is already involved in the industry in Sabah and Sarawak through a joint venture (JV) with Tasco Bhd.
The expansion in Peninsular Malaysia will be undertaken via a new JV with Singapore-based JWD Asia Holding Pte Ltd to form Swift Cold Chain Sdn Bhd, with Swift Haulage contributing RM7.3mil to the venture for its 51% stake in the JV.
It is worth noting that JWD holds a 20.48% stake in Swift Haulage.
JWD will design the warehouse layout and infrastructure, as well as providing training for the new venture while Swift Haulage will oversee the day-to-day operations and focus on identifying potential customers.
The companies are undertaking feasibility studies for a cold-chain facility in Tebrau, Johor, which will target the high demand in Singapore, the research house said, adding that Swift Haulage is also exploring expansion in Penang and other areas.
As the JV is still in its preliminary stages, MIDF Research maintained its “neutral” call on Swift Haulage with an unchanged target price of 46 sen a share.
