Could you give us an overview of LTH’s infrastructure and capabilities?

Specializing in integrated logistics services for the chemical industries in both Singapore and Malaysia, the LTH Group comprises of two entities, one based in Singapore and one in Malaysia (which goes under the name of “Lee Thong Hung Trading and Transport Sdn Bhd”). These essentially comprise of transportation, distribution and warehousing, break bulk, repackaging and drumming, in-plant logistics, tank cleaning, repair & modification and the provision of emergency response services. In Singapore, LTH operates two warehouses of over 1 million sqft. Our first warehouse, active since 2012, is an integrated 700,000 sqft facility that comprises of a 6-storey warehouse facility, open yard space for bulk cargo storage, largely in the form of ISO tanks and containers and customized storage space for some of our customers. The second facility, located in mainland Singapore, has a capacity of over 400,000 sqft in covered warehouse space. Both facilities possess dangerous goods (DG) infrastructure. Our Malaysian entity is located in West Malaysia, with facilities spread out across the country, including Kuantan (in the state of Pahang), Klang (in Selangor), Seremban (in Negri Sembilan) and Kulai (in Johor). Both entities work and communicate closely with one another, allowing us to leverage on each entity’s resources to capitalize on business opportunities not only within their respective territories but also cross-border movement of cargoes. This has allowed LTH to synergize efforts and improve offerings to its business partners between Malaysia and Singapore, two countries with a deeply entrenched chemical footprint.

How are disruptions around vessel shipping affecting the logistics industry?

Global supply chain constraints, including vessel and container shortages, have been the biggest factor dampening the return of growth in both Singapore and Malaysia. For the past two years, demand has become “lumpy” rather than being evenly distributed, with periods of slow demand quickly followed by demand spikes. The operational efficiency of service providers like ourselves is continuously challenged, especially in terms of resource planning. For example, in the last six to nine months, Singapore has seen more vessels carrying increasingly larger container quantities for handling compared to before. These high-capacity vessels calling at the port create a huge strain on resources and significantly increases the workload related to transporting the containers and unloading them at the warehouse. An often cited reason for this is customers are consolidating their shipments as a result of missed and disrupted vessel schedules. It is not surprising to find that activities that took place three times/week before the pandemic are now squeezed to twice a week, leading to intermittent periods of quiet and chaos.

How is LTH Logistics looking to make its operations more sustainable?

Logistics activities require significant amount of energy and fuels, but there are opportunities to drive sustainability within this energy-intensive industry. Vibrant Group has put in place a dedicated committee to steer sustainability developments. At the operational level, we are regularly tracking developments in the EV industry, as well as looking at shifting to cleaner energy. While EV technology is still immature for heavy trucks, it holds great possibilities for the future. We anticipate that as EV technology evolves and transcends into the heavy vehicles arena, there would be an eventual shift away from diesel trucks to EV trucks. In the meantime, we also see an opportunity to reduce our carbon footprint through the use of renewables. LTH is in the process of evaluating and discussing the installation of solar panels to support the energy requirements of our warehouses. Solar energy has become an increasingly viable option that promises not only lower costs at a time when the price for traditional energy is skyrocketing, but also a route to a better environment as part of the Group’s attempts to drive its sustainability goals.

What are your key objectives in the next two years?

Coming out of the pandemic, our principal focus today is to position ourselves more strategically within the “new normal” by tweaking our business processes and optimizing our operations to deliver more cost-effective solutions to our business partners. Technology will be a key driver to realizing greater efficiencies. It is imperative that we renew focus on base customers and build even stronger relationships by reconnecting with the new realities of our customers, all of whom have undergone important transitions in the last two years of market disruption and volatility.