UTS finds niche in shipping, freight services

KOTA KINABALU: UTS Logistics Sdn Bhd, a subsidiary of ABX Corporation Sdn Bhd, has effective from this month, entered into the highly competitive shipping and freight services sector of the transportation industry.

Tan Chong Yian

UTS has over the last 15 years built up an extensive network of 17 centres in Sabah and 12 in Sarawak for its door-to-door delivery of goods in these two states.

Tan Chong Yian, the group executive director of ABX Corporation, said the latest venture of UTS Logistics into the shipping and freight services sector was to assist small traders in Sabah and Sarawak to import small quantities of goods from China.

He said the UTS has carved a niche in this line of business in order to benefit traders, retailers, pasar malam and tamu hawkers, and other self-employed persons engaged in small-scale trading business.

“With the introduction of this service, UTS Logistics can now accept the import of smaller quantities from these traders who had in the past found it was unable to do so.”

For a start, the arrangement is for import from Guangzhou port on a weekly basis and the first batch of four containers of cargo have already reached and cleared from the port here and delivered to the traders concerned.

“We are presently making use of Kota Kinabalu and Sibu ports as entry points and from there UTS shall make deliveries over land to wherever the destination of the customers.”

Tan said that through this special service, small time traders in the two states could import China products at whatever quantity.

“Previously, they had to buy quantities of not less than one container shipment and not all traders are capable of dealing with such large quantities of goods required,” he said.

He made this observation: “No matter where you go (in the world), you see products made in China. It means that China is the main source of manufactured goods for the world.

“I reckon this will be the case for the next 30 to 50 years. I can see that Asian countries like Vietnam, Indonesia and India are likely to become competitors (to China) in the future.

“But China is always ahead in terms of speed in supply and in catching up with technology, for example, the Ipad (an Apple product).

“That is why we have opted for China to start this mode of shipping and freight services,” said Tan to The Borneo Post at an interview here yesterday.

From the China end, Guangzhou has been picked as the port for export and shipments are made at a weekly frequency, with Monday as the cut off day for acceptance of goods at its warehouse there.

Ships leave Guangzhou on Tuesdays and they usually take from seven to 10 days to reach the ports at Kota Kinabalu or Sibu, the points of entry the UTS have picked.

Tan disclosed that UTS Logistics had formed an alliance with a Malaysian businessman who has established his network in China, with Guangzhou as his base, for over 12 years now.

Despite many other companies in both Sabah and Sarawak having long experience in this line, Tan said he was confident that UTS Logistics would do well.

“We are carving a special niche in this market serving a special need of the business community in these two states.

“Our aim is to help small traders and consumers. It means cheaper goods for them from China since they do not have to deal through several intermediaries as they had to in the past.”

Tan said on an average, the charges and fees imposed by UTS Logistics are higher than those charged by other shippers, at about RM50 per metric tonne of cargo.

“But the difference is that these small time importers would not have to be concerned with internal transport of the goods that have arrived at the ports of entry, since UTS delivers the goods right to their door step.”

He said this was possible because of the extensive UTS network in Sabah and Sarawak. This, he added, would mean convenience to importers.

Tan said that Francesca Chang Siew Len, the company’s area manager for Sabah, Labuan and Brunei, had been placed in charge of this new venture.

Chang, who was also present at the interview, said that aside from Guangzhou, the company would also use two other export points from China – Yi Wu, a centre in the north, near the City of Shanghai, well known for production of small items of goods and Hong Kong.

The company has designed and posted a new website www.uts.my to introduce this latest service to the public.