Question: Discuss the logistics strategies based on the case study above.

The first logistics strategy is to optimise existing infrastructure and assets, as well as
accelerate usage of automation through the adoption of technology and digitalisation in
transport such as accelerating usage of automation and digitalisation to increase the
efficiency of port and vessel operation. This means that the government will implement
smarter and more efficient use of existing infrastructure and in developing new
infrastructure. This enables the government to develop the Internet of Things (IOT) in
the transport sector through the adoption of automation and digitization, providing
improved communication, control, and data distribution. This can help to improve
consumer experience in public transport.

The second logistics strategy is upgrading rail facilities to and within ports to ease
freight movement. This will increase the utilisation of rail service for passenger and
goods because it will encourage modal shift of freight from road to rail. This will also
help to reduce greenhouse gas emission and road congestion because the distance
travelled by road has been reduced. Increasing the utilisation of rail service will also
reduce the number of heavy vehicles on roads, which can increase traffic safety. This is
because passenger car drivers usually try to stay away from heavy vehicles, they will
move into other lanes, which might reduce traffic safety.

In addition, the third logistics strategy is to improve, integrate and expand rail and road
links to airports, seaports and inland ports, industrial areas, and the hinterland.
Hinterland connectivity of airports and seaports is often cited as a key concern in
moving cargo, leading to increased costs and delays in movement of goods. This
strategy will improve the road development for better connectivity between urban and
rural areas as well as within rural areas. This will also help to create domestic volume
for cargo and boost trading activities because it reduces the bottleneck and ease the
movement of cargo to seaport and airport. This has established a seamless and
efficient total logistics system to facilitate efficient transportation of goods.

Moreover, the fourth strategy is to reinforce the maintenance regime for all assets and
infrastructure to ensure seamless, safe and efficient operations. There are ways in
which governments can maintain all transport infrastructure, particularly rail and road.
For example, practice risk assessment and life cycle asset management. This is to
ensure that all assets are in the best condition for operation and to enable delivery of
reliable and efficient services, meeting users’ expectations. By doing so, it can minimise
accidents, disruptions and costs associated due to lack of maintenance of transport
infrastructure.

Furthermore, the fifth strategy is further review of the current regulatory framework, as
the effect of increased regulations may dramatically increase the cost of doing business
in addition to impacting transit times, damaging the value proposition of air cargo as a
quick way to transport goods. By doing so, the air cargo business could become more
competitive to support Malaysia in becoming a regional distribution centre.
Lastly, the sixth strategy is modernise integrated logistics. With the proliferation of
technologies such as cloud-based services, miniaturised sensors and online purchasing
there is strong demand for integrated logistics as the foundation of the transport
industry. There is an urgent need to move towards web-based platforms for better
utilisation of warehouse, goods vehicle and container space through sharing approach
to improve efficiency. This can facilitate seamless movement of goods and reduce the
cost of doing business for transport-related activities. It will also strengthen the
monitoring system for containers and trailers for efficient movement of containers.