Kontena National Berhad

Kontena Nasional Berhad (KN) is Malaysia’s premier logistics company Boasting an experienced workforce of over 600 personnel, an extensiv fleet of prime movers and trailers, a vast storage capacity and state-of the-art IT infrastructure, the company is evolving to meet the requirement of the modern industry. Hannah Barnett spoke to CEO Nik Muzani Nik Abd Aziz, Division Head of Freight Forwarding Kirawan Zeiswar Kamarolzaman and Branch Manager of KN Johor Saffari Mohamad.

According to Nik Muzani Nik Abdul Aziz, CEO, KN’s longevity is one of the elements that make it stand out: “We are not the new kids on the block; we’ve been in the business 52 years. We are the pioneer in Malaysia’s haulage. And these days, with our freight forwarding arm, we are positioning ourselves to become a premier supply chain logistics solution company – not just in Malaysia but globally.”

History and facilities

Internationally, KN offers an extensive network of agents with a presence in Asia, Europe, America and Australia. The company

began operations in 1971 when containerisa tion was introduced to Malaysia. Since the it has expanded its business from contain haulage to international freight forwardin warehousing, distribution, supply chain sol tions, cold chain solutions and Halal logistic KN became part of the MMC Group in 2016

“Our operation is based throughout Malaysia,” said Mr Nik Muzani. “We have 21 offices across the Malaysian peninsula. We have 500,000 square feet of warehouses with a total storage area of 3.7 million square feet.” Alongside this alread robust infrastructure, a new 100,000 square foot warehouse powered by solar

KONTENA NASIONAL BERHAD (KN) I PROFILE

panels is under construction in Port Klang, in the southwest of the country. It is set for completion by the first half of 2024. The company currently operates 150 prime movers with over 900 clients throughout Malaysia. “Last year alone, we handled 160,000 TEUs,” Mr Nik Muzani said. This strong growth is complemented by an equally healthy turnover. In 2022, the company turned over 155 million Ringgit, the equivalent of $34.5 million.

Decarbonisation and efficiency

Moving in tandem with the Malaysian government’s direction and initiative, KN has embarked on an increased efficiency plan. Part of the strategy includes refurbishing its fleet with more fuel-efficient vehicles. Recent additions include new Volvo and

Scania prime mover units, designed to produce less emissions. As a result, more than half of KN’s haulage fleet of prime movers are now compliant with the EU’s carbon emissions standards.

“We’ve been in the haulage business since 1971,” Mr Nik Muzani explained. “So naturally some of our equipment was on the older side. That is why we have retired more than half of our prime movers and bought a few newer ones that comply with EU standards.”

In the global push towards decarbonisation, KN is also adopting other sustainable practices, like optimising the efficiency of its transportation routes, preventing unnecessary journeys (so-called ‘futile movement’), and improving fleet management to reduce fuel consumption and emissions.

GRÖNINGER

Gröninger Cleaning Systems is a globally operating supplier and producer of cleaning systems.

To clean ISO tanks, Gröninger supplies a state-of-the-art four-bay-cleaning system with a steam generator and two rotor jets. In addition, a latex circulation unit and a dryer are supplied. Both systems are heated by electricity, making them completely sustainable.

Gröninger is proud to partner with the esteemed Kontena Group.

“We are setting up a new system called Kontena Nasional Integrated Digital System or KIDS, for short,” said Kirawan Zeiswar Kamarolzaman, Division Head of Freight Forwarding. “It is a new, integrated digital system which includes GPS, route optimisation and planning software and telematics. It will help to streamline the journeys our fleet make.”

ISO tank cleaning project

One of KN’s most innovative recent investments is an ISO Tank Cleaning Depot in Johor, located in the south of Peninsula Malaysia. Using a complete cleaning ecosystem from Gröninger Cleaning Systems in Holland, the automated depot is capable of cleaning up to 15 ISO tanks a day.

“The new depot is part of an exciting era for KN,” said Saffari Mohamad, Branch Manager of KN Johor. “When doing this sort

of cleaning manually, an ISO tank can take up to two hours to complete. This new stateof-the-art system will only take 30 minutes per tank. Plus, innovations in reliable and complete wastewater and water treatment systems make this facility highly efficient, cost effective and eco-friendly.”

The water treatment system is designed to recycle all water collected and produce zero wastage, ensuring any potentially hazardous discharge from the cleaning operation is treated and managed in accordance with the Department of Environment’s regulations. KN has collaborated with Aliran Ihsan Resources Berhad (AIR Berhad) for the venture: another com pany within the MMC Group.

“This is the beauty of being associated with a bigger conglomerate,” Mr Nik Muzani said. “Because we are part of the leading utilities and infrastructure group of companies in Malaysia, there are a lot of resources and technologies that we can tap into. Our sister company AIR Berhad has a sophisticated energy technology that allows us to recycle the water without having to pump it into the environment. Overall, the ISO tank cleaning project is a first-of-its-kind operation in Malaysia and really sets us apart from our competitors.”

A prosperous future

Working closely with suppliers and partners is critical to the success of any logistics company. As Mr Nik Muzani explained, KN cooperates with its network to share insights, establish clear expectations, provide support and build trust, to create long-term business relationships.

“KN collaborates with our suppliers and partners to identify areas for process improvement,” he continued. “This includes reducing transit times, improving delivery accuracy and reducing waste in the supply chain. By working in partnership to implement these improvements both parties benefit from increased efficiency and cost savings.”

There are, of course, some challenges on the horizon for KN. The logistics industry is undergoing rapid technological change, with innovations such as artificial intelligence and automation disrupting traditional logistics practices. Keeping up with these changes and investing in the right technology poses one significant challenge for KN.

But where any successful company identifies a problem, it also finds a solution: “The challenges of today’s market highlight the importance of agility, innovation, and customer-centricity in the logistics industry,” Mr Nik Muzani reflected, “and KN is set to continue evolving and adapting to

meet the changing needs of its customers and the market.”

Attracting and retaining skilled employees is also essential for the success of any company. KN is dedicated to competing with other logistics providers and industries to attract and retain talent with the right skills and experience.

“I believe that the development of our human capital and talent, alongside advancements in tech solutions, will enable KN to leap into the future,” concluded Mr Nik Muzani. “This means us realising our full potential as a niche solutions provider in Malaysian logistics.

“The changes we have already undergone – like the acquisition of new and more efficient prime movers, the development of our integrated digital system, the launch of our ISO tank cleaning depot and the various training programmes for our team members – have all contributed to a revived sense of joy in coming to work. Seeing our team buoyed by this new liveliness has sparked a renewed excitement in us all.”