AirAsia and SATS’ ground handling joint venture, Ground Team Red (GTR), has opened a new airfreight hub at Kuala Lumpur Airport’s (KLIA) Air Cargo Terminal 1.

The Malaysian low-cost carrier said the new 93,000 sq ft facility, which cost MYR 23 million (US$5.5 million) to build, will expand storage capacity from its existing 40,000 sq ft warehouse.

Increased handling capacity at KLIA

When combined, the old and new facilities will be able to process 300,000 tons of airfreight per year — bringing Malaysia closer to its goal of being a regional logistic hub.

 “With global e-commerce players investing in the region, the increased capacity and digitalisation will enhance air cargo handling services. We will continue our efforts to strengthen Malaysia’s position to become a world-class logistics hub in the region by adding capabilities in other parts of Malaysia,” said GTR chief executive, Kevin Chin.

The new air cargo hub enables GTR to expand its capabilities by handling both narrow and wide-body aircraft cargo operations and has a motorised material handling system that facilitates efficient handling of Unit Load Devices (ULDs).

Specialized facility for pharma, perishables

The new air cargo hub also has a purpose-built 10,000 square feet cold-chain facility for specialised handling for perishable and pharmaceutical products and dedicated zones for dangerous goods, pets and valuable cargo handling.

Modern security cargo scanners were also installed to offer both horizontal and vertical views of cargo to enhance detection.

“I would like to congratulate GTR on the launch of their air cargo hub today, and their efforts to enhance airline ground handling operations in Malaysia. I would also like to see GTR replicate this facility – in particular, their cold-room capabilities – to other airports in Malaysia to add further value to our ambition of developing Malaysia as a logistics hub,” said YB Loke Siew Fook, minister of transport.

Further expansion in Malaysia

GTR also plans to expand its footprints further in Malaysia as it sets its sight on opening three more cargo handling facilities across Malaysia — in Penang, Kota Kinabalu, and Sandakan, although it remains unclear when or where exactly these three facilities will be opened.

The joint venture was established in November 2017, allowing SATS and AirAsia enter into a share swap and sale deal, to gain an interest in each other’s ground handling units.