GAC Expands Operations in East Malaysia

August 23, 2023

Daniel Nordberg, GAC Group Vice President, Asia Pacific & Indian Subcontinent
Daniel Nordberg, GAC Group Vice President, Asia Pacific & Indian Subcontinent

Shipping and logistics company GAC Malaysia has opened a new office in Kota Kinabalu expanding its presence in the region to provide solutions to the evolving needs of the shipping and energy sectors.

The new office, GAC Malaysia’s 14th, will work in close cooperation with its Labuan office in the eastern state of Sabah and provide a wide range of shipping and logistics solutions, including ship agency, bunker fuels and husbandry services, as well as bespoke logistics, warehousing and distribution operations.

The opening of the Kota Kinabalu base follows the recent collaboration between Petronas Carigali (PCSB), a wholly-owned subsidiary of Petronas, and the state government of Sabah over the operation of the Samarang offshore oil & gas field.

The Samarang field, 50km off the coast of Sabah, produces approximately 36,000 barrels of O&G equivalent per day and 134 million standard cubic feet per day of gas. The fuel is used to support the energy needs of customers in Kota Kinabalu and Labuan.

"Sabah is poised for major growth, most notably in its energy sector. This expansion will complement our operations in Labuan, fortify our presence in East Malaysia and enable us to be a critical part of the development in Sabah," says Herman Jorgensen, Managing Director of GAC Malaysia.

The Malaysian freight and logistics market is estimated to be worth $26.35 billion in 2023 and is expected to reach $35.10 billion by 2029, growing at a CAGR of 4.9% in that period, according to Indian market research firm Mordor Intelligence.

In a bid to support this forecast growth, GAC Malaysia has plans to open more offices in Kuantan and Yan on the Malaysian Peninsular.

Daniel Nordberg, GAC’s Group Vice President, Asia Pacific & Indian Subcontinent, said: “The new office in Kota Kinabalu is a testament of GAC’s commitment and confidence in the Malaysian market, where we have been providing services for almost 30 years. As a leading shipping and logistics service provider with an established foothold in Malaysia, GAC is well-placed to tap into the multitude of opportunities that Sabah presents.”

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