Air Asia, SATS Ltd. joint venture launches cargo hub at Kuala Lumpur Airport

Ground Team Red (GTR), a joint venture between Air Asia and SATS Ltd., has launched its new air cargo hub at Kuala Lumpur International Airport’s (KUL’s) Air Cargo Terminal 1 (KACT1). The move is intended to support both the airport and Malaysia’s aligned goals of developing into a regional logistics hub.

GTR’s new facility consists of 93,000 square feet and cost over US$5.5 million (MYR 23 million) to build. The space will supplement GTR’s existing 40,000-square-foot warehouse at KUL, with the combined operations of both facilities expected to handle around 300,000 tonnes of air freight per annum, according to the press release. The facilities are aimed at capturing an increase in volumes GTR expects to see at KUL as a result of growing investment by global e-commerce companies into the region.

Commenting on the facility, Malaysia’s Minister of Transport Loke Siew Fook said it will help to support both the airport’s and country’s aims to develop into regional logistics hub. “I would also like to see GTR replicate this facility, in particular their cold-room capabilities, to other airports in Malaysia.”

In the future GTR said it plans to continue expanding its capabilities throughout Malaysia, though further details on these plans have not been disclosed. Even so, GTR will be a company to watch as Southeast Asia has grown as an emerging market for air cargo over the past few years. Whispers from other air cargo and logistics stakeholders to Air Cargo World also suggest the industry will continue to see an increase in air cargo operations in the region over the coming year.

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