SOUTHEAST ASIA BUILDING30 Jun 2023
IJM Construction awarded RM653.6 million contract to build Shah Alam International Logistics Hub – Malaysia’s first green-certified logistics hub
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Petaling Jaya, Malaysia – Leading builder, IJM Construction Sdn Bhd (“IJM Construction”), a wholly owned subsidiary of IJM Corporation Berhad (“IJM”) has been awarded a RM653.6 million contract for the design, execution and construction of phase one of the Shah Alam International Logistics Hub (“SAILH”). The project, commissioned by Global Vision Logistics (“GVL”), will establish the country’s first green-certified logistics hub, one of the largest in the ASEAN region.

SAILH, strategically located on a 71-acre site in Shah Alam, will serve as a state-of-the-art logistics hub with excellent connectivity to major transportation networks and key industrial areas. The facility will feature cutting-edge logistics infrastructure, advanced technology and systems, and a range of sustainable elements, showcasing IJM Construction’s commitment to sustainable development and innovative solutions that meet clients’ evolving needs while contributing to environmental goals.

Phase one of SAILH includes a four-storey warehouse complex, a four-storey multi-level parking facility, and a one-storey office alongside ancillary buildings, including testing and commissioning works. Construction is scheduled to commence in the third quarter of this year, with an estimated completion timeline of 26 months. Upon completion of phase one in 2025, the development will have a total net lettable area of 2.8 million square feet.

The SAILH contract further strengthens IJM Construction’s outstanding order book to RM5.1 billion, comprising a mix of high-profile private and public sector projects in building construction and civil engineering.

“We are honoured to be entrusted with the design and construction of SAILH,” said Mr. Lee Chun Fai, Group CEO & Managing Director of IJM. “This project reaffirms our position as a leading player in the construction industry and showcases IJM’s expertise in delivering sustainable and future-ready developments. Our partnership with GVL allows us to create a world-class logistics hub that not only aligns with our net zero commitments but also sets new industry benchmarks.”

SAILH will incorporate eco-friendly features from construction to operational phases, prioritising energy efficiency, resource conservation, and environmentally-conscious practices. These include the use of low-carbon building materials during construction to the installation of solar panels, efficient water fittings and energy-efficient lighting, elevators and air-cooling systems.

Mr. Oh Kim Sun, Chairman of GVL said: "We are delighted to collaborate with IJM Construction on this significant milestone in Malaysia’s logistics sector. The SAILH will be a game-changer, demonstrating our shared vision for sustainable infrastructure that fosters operational excellence. Through the provision of a sustainable and technologically advanced platform, it will empower businesses to thrive while enhancing our capabilities and strengthening our position as leaders in delivering efficient and environmentally conscious logistics solutions."

“The logistics hub is set to achieve the local GreenRE Silver Rating and gain international recognition from the Excellence in Design for Greater Efficiencies (EDGE) Advanced and EDGE Zero Carbon certifications. These standards and certifications align with the United Nations Sustainable Development Goals and the World Green Building Council’s commitment to developing buildings that produce as much (or more) energy than they consume or aim to achieve a net zero future,” Mr. Oh added.

The development of the SAILH coincides with GVL’s recent launch of a RM1.5 billion ASEAN Green SRI Sukuk Programme in March this year. The Sukuk Programme will finance the development of SAILH, while emphasising GVL’s commitment to sustainable investments and eco-conscious infrastructure development within the region.

“The collaboration between IJM Construction and GVL reflects a shared vision of driving economic growth, enhancing Malaysia’s logistics capabilities and promoting sustainable development within the industry. Leveraging our expertise and resources, both IJM and GVL are committed to delivering a state-of-the-art logistics hub that meets high standards of innovation, efficiency, and environmental stewardship,” said Mr. Lee.