Fast-tracking its vision to become a leader in Southeast Asian logistics, Sino Logistics Corporation PLC (SINO) establishes a presence in Malaysia with a brand-new branch office.

On April 24, SINO signed an agreement with Malaysian businessman Mr. Lee Kwee Keong to form ‘Sino Worldwide Logistics Sdn. Bhd.,’ a joint venture which will serve as SINO’s dedicated Malaysian branch. The signing ceremony was held at the Royal Maneeya Ballroom, Renaissance Bangkok Ratchaprasong Hotel.

In this issue of LM Magazine, we interviewed Mr. Nanmanus Witthayasakpant, Chief Executive Officer of Sino Logistics Corporations PLC, along with three directors of Sino Worldwide Logistics Sdn. Bhd.: Mr. Lee Kwee Keong, Mr. Kavin Kitcharoen, and Mr. Kritpong Boonsukchote. Our insightful discussion delved into the reasons behind the new branch opening and the exciting future growth plans and goals for the venture.

Strategic Expansion into Malaysia

With an annual growth rate of 8.7 percent, as reported by the World Bank, Malaysia stands as one of the fastest-growing economies in the Asia-Pacific region. This rapid economic expansion not only signifies a thriving business environment but also underscores a heightened demand for logistics services to facilitate the growing trade activities.

Having established a robust presence in the Thai market, SINO now sets its sights on broader horizons within Southeast Asia. Owing to its strategic cross-border proximity and burgeoning potential, Malaysia emerges as the company’s inaugural destination for a region-level expansion plan.

“Southeast Asian expansion, as envisioned in our IPO plans, represents a significant milestone for SINO. Our strategic focus centers on growing our Free on Board (FOB) shipping business to the United States, and Malaysia serves as a critical link in this chain, making it the perfect choice for our inaugural overseas branch. Transitioning from reliance on agents to establishing our own branch office in the country provides us with greater control and scalability, which are crucial for our long-term operational growth,” explained Mr. Witthayasakpant.

“Ranking third this year for Thailand-USA maritime cargo, according to Datamyne, our proven track record positions us for a successful Malaysian market entry. By replicating the efficient solutions and responsiveness that fueled our success in Thailand, we are confident that this expansion will be instrumental in achieving our Southeast Asian logistics leadership vision.”

Charting a Course for Success

In Malaysia, SINO offers end-to-end logistics solutions, encompassing sea, air, and land transportation, along with warehousing services. Managed by Mr. Lee, a seasoned industry professional with over 18 years of experience, SINO’s Malaysian operations leverage his in-depth market knowledge and the group’s extensive resources. The branch is committed to providing customized logistics solutions to meet the unique needs of local businesses.

“Initially, we will focus on sea freight to the United States, catering to the established demand from Malaysian exporters. Additionally, our services will encompass cross-border transport between Thailand and Malaysia, facilitating regional trade. We will also be offering solutions for niche markets, such as ISO Tank services. I view this expansion as a gateway to an exciting new market for SINO and a crucial step to unlocking the full potential of Malaysia’s dynamic economy,” revealed Mr. Lee.

“Looking ahead, SINO is committed to developing an even more diverse portfolio of services. This includes reefer solutions and a range of customizable logistics solutions tailored to meet the specific needs of various industries.”

Seamless Synergy

Expanding its customer base overseas is a key strategy for SINO, fostering synergy between its new overseas branch office and the headquarters in Thailand. In addition to increasing market share, the synergy affords overall price advantages to its customers. This approach enhances SINO’s negotiating power with shipping lines, enabling it to secure better rates on larger cargo volumes. This collaborative approach amplifies SINO’s leverage in price negotiations, capitalizing on the combined strengths of its network.

Mr. Kitcharoen forecasted operating results for the first year: “The new branch is set to contribute 2,000 TEUs of sea freight services. This significant addition positions SINO to exceed its annual target of 53,000 TEUs, solidifying our position as a leading Southeast Asian logistics provider.”

“Beyond its contributions to our overall volume, the new Malaysian branch offers significant customer benefits. By operating through SINO, businesses can expect seamless service delivery alongside competitive local pricing. Additionally, our Malaysian services seamlessly integrate with our established Thai network, ensuring greater efficiency and superior service quality for our customers,” he added.

Future Projection

While Malaysia marks but the initial stride in SINO’s expansion across Southeast Asia, its trajectory extends beyond, encompassing Vietnam, Indonesia, and beyond.

“Currently, our presence in Vietnam and Indonesia involves collaboration with partner agents,” explained Mr. Boonsukchote. “However, we have plans to replicate the successful Malaysian model by establishing dedicated branches in these markets soon. This direct presence will be key to unlocking Southeast Asia’s full logistics potential.”

“Our future growth strategy centers on expanding US-bound shipments from Southeast Asia. Leveraging our FMC bond contract, we aim to increase volume and solidify our market share significantly. We are further committed to offering flexible shipping solutions by pursuing growth in both FOB and Cost & Freight (CNF) models. This strategic approach will broaden our customer base and propel our overall expansion in the region.”

Planning to replicate its success in Thailand, the expansion into Malaysia signifies SINO’s broader ambitions within Southeast Asia. Looking ahead, the company aims to achieve ambitious targets in terms of both market share and service responsiveness, ensuring seamless service delivery and competitive rates for customers in Thailand, Malaysia, and beyond.

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