FGV Trading gaining ground

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) which recently merged its marketing units into FGV Trading Sdn Bhd aims to sell and trade 4.7 million tonnes of palm oil by year-end.

FGV head of trading & marketing and logistics cluster Datuk Khairil Anuar Aziz said FGV Trading has, in the last four months traded 1.3 million tonnes of crude palm oil (CPO). 

"This is a good achievement for a new company. By the end of the year, We aim to trade 4.7 million tonnes of CPO, of which 60 per cent are from our own estates while the rest from external sources," he said in a phone interview yesterday.

Khairil said FGV's traditional clients are China, Japan, Bangladesh, India and Pakistan, as well as the Indo-China region such as Vietnam, Myanmar, Cambodia and Laos.

As the group expands through acquisitions, it will be selling more oil to new markets in West Asia, the Mediterranean, North Africa, Eastern Europe and the Balkan regions.

"For a start, our new team is trading CPO, processed palm oil and crude palm kernel oil.

By next quarter we're hopeful of adding on to our lauric oils profile by sourcing coconut oil from the Phillipines. We seek to better serve our oleochemical and detergent-making clients," he told Business Times.

"As we add on more products, we aim for our traders become more adept. In the mid-term, we would like to also trade rival oils such as soyabean, rapeseed and sunflower. We want to raise our game to be on par with other global vegetable oils traders," he added.

Moving on the group's logistics operations, Khairil said Felda Transport Services Sdn Bhd carries up to seven million tonnes of CPO products and this will increase in line with more estates being acquired.

Felda-Johore Bulkers Sdn Bhd remains the group's largest and modern vegetable oils storage in the world, capable of handling eight million tonnes per annum with a storage capacity of over 800,000 tonnes.

"We are strengthening our logistics through Logistics Centre of Excellence so as to optimise our transport asset usage and efficiency,” he said.

Besides transporting palm oil, FGV Transport also move hard commodities such as steel bars, petrol and diesel. It plans on bidding for more oil and gas transportation jobs at Rapid Pengerang, Johor.

To date, Khairil said the moving of hard commodities is contributing 30 per cent of its logistic revenue.