SEPANG, 31 January 2011 – Malaysia Airlines Cargo Sdn Bhd (MASkargo) and Lodige Industries today signed a multi-million ringgit agreement which will redefine cutting-edge technology, elevating cargo handling system to a whole new level.

The agreement was signed by Shahari Sulaiman, Managing Director of MASkargo and Dr Rudolph Lödige, President of Lodige Industries, witnessed by Tengku Dato’ Sri Azmil Zahruddin MD/CEO of Malaysia Airlines.

The Material Handling Control System (MHCS) enhancement project valued in excess of RM100 million will be completed in five phases - Diagnosis, Design and Development; Initial Repair and Modifications; IT System Implementation; Refurbishment and finally Enhancement.

The upgrading of the MHCS will accommodate MASkargo’s growth plans over the next 10 years. The Advanced Cargo Centre (ACC) was developed in 1998 to handle 650,000 tons of cargo per annum. Upon the completion of the project, it is expected that MASkargo will be able to handle up to 1 million tons of cargo per annum.

This project is not merely an expansion but also about redesigning how cargo will be handled in a more efficient and expedient manner to better serve our customers. The technology applied will also improve the handling of transhipment cargo,” said Shahari Sulaiman.

The refurbishment of the MHS Equipment and Control Systems will replace obsolete technologies; improve machine operations and design out recurring faults. The current IT system at the warehouse will be replaced with industry standards application technology and logistics philosophies.

This project will also, in effect, redevelop ACC’s Operational Procedures to produce a fully integrated and efficient cargo handling system and operations which final objective is to drive out cost and drive up reliability.

Mr Shahari continued, “After a very comprehensive evaluation process, we have selected Lodige Industries to undertake our warehouse enhancement project as they have an excellent track record in system delivery and refurbishment. We are happy to have entrusted Lodige Industries with this project as they are market leaders and have a proven track record in cargo system upgrading.”

President of Lodige Industries Dr Rudolph Lödige said “A technically challenging project, our engineers designed a comprehensive and cost effective solution that meets MASkargo’s requirements to extend the life of the material handling system and dramatically improve its capacity.

“Lodige’s ability to see through the complexities of hub operation and find practical solutions was key in securing this order. This combined with our extensive experience in system maintenance and refurbishment, gives us the edge over our peers.

He also said “we look forward to working with MASkargo to redevelop the ACC and help them achieve their long term objectives of becoming a major force in global air cargo handling. “

As Director of the MHCS Project (MASkargo), Mohd Yunus Idris said, “the ownership of modern architecture and having the expertise to use multiple platforms to assist in the implementation of our warehouse enhancement project will increase the reliability and capability of MASkargo’s services. We look forward to having a fully-automated warehouse system which can minimize cost whilst increasing quality of service and system performance.”