KUALA LUMPUR: PDZ Holdings Bhd and Sanichi Technology Bhd are planning to jointly develop a regional e-commerce logistics hub in Johor, which is estimated to cost over RM1.5 billion.
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 New Straits Times (NST) sighted a document stating that the hub was expected to be developed over 234 acres in Desaru, Kota Tinggi.
People familiar with the matter said that the gross development value (GDV) would exceed RM20 billion.
It is understood that both PDZ and Sanichi would jointly apply for approval from the relevant government agencies in Johor to develop the hub.
Key officials from PDZ were not reachable at press time.
Sanichi group managing director Datuk Sri Dr. Pang Chow Huat, when contacted, confirmed that the company was planning to develop a regional e-commerce logistics hub in partnership with PDZ in Johor.
Pang said the logistics hub would be a mixed development comprising an e-commerce centre, a distribution centre, warehouses and a transit centre.
When asked to comment on the potential GDV for the development, Phang said "it will run into several billion ringgit."
"We are planning this hub to ride on the exponential growth in the e-commerce business across Asia. E-commerce has grown significantly since the outbreak of the Covid-19 last December and there is pent-up demand for the movement of goods.
"We decided to build the hub in Desaru as there is ample land available for development and it is strategically located," he said.
Sanichi is a property developer with an on-going development in Melaka called Marina Point, which is nearing completion.
The stock rose one sen or 13.33 per cent higher today to close at 8.5 sen with some 133.6 million shares traded.
PDZ 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.
Despite Pelaburan Mara Bhd's exit as the single largest shareholder in PDZ on July 3, the stock has been rising steadily.
PDZ's share price has shot up by more than 200 per cent from nine sen on July 7 to its closing price of 24 sen today, boosting its market capitalisation from RM79.79 million to RM208.35 million.
The stock rose three sen or 14.63 per cent higher today, with 581 million shares changing hands.