Smart Logistics Modernises Malaysia-Singapore Cross-border Freight -- FedEx
By Mohamad Syazwan Mustafa
SINGAPORE, Sept 7 (Bernama) -- Express logistics operators are integrating artificial intelligence (AI) and remote monitoring technology across their ground networks to boost cross-border freight efficiency ahead of the Johor-Singapore Special Economic Zone (JS-SEZ) integration.
FedEx Malaysia managing director Woon Tien Long said that as trade volumes expand across the southern corridor, industry players are moving beyond traditional manual processes to digital platforms that support customers around the clock and secure cargo in transit.
He said digital innovation, particularly AI-driven customer operations, is essential to managing the increasing complexity of cross-border trade movements.
“For us, AI is about the ability to do multiple things at one time and the possibilities that it creates for our customers.
“Yes, productivity improves, and costs come down, but that is not the whole story,” Woon told Bernama during the FedEx Johor-Singapore Cross-Border Media Tour at the FedEx South Pacific Regional Hub in Singapore.
“Historically, when you chat with us, there used to be a human behind it. But it is not practical to have someone staying up at two in the morning just to reply to a customer.
“When you build in technology to support your customers 24/7, the customer is able to self-serve and have that conversation,” he added.
Woon said physical security and ground infrastructure are undergoing a parallel digital upgrade to safeguard freight moving along the vital FedEx Asia Road Network, a 3,800-kilometre cross-border road corridor with over 100 weekly schedules connecting Singapore, Malaysia and Thailand.
He said the network’s existing monitoring capability gives FedEx a head start as cross-border volumes grow under the JS-SEZ.
“We have the know-how, the technology and the infrastructure already set up. We have the ability to remotely monitor, and in the worst-case scenario of a highway hijack, we have the ability to remotely lock down that vehicle to protect the personnel, the driver, as well as the contents inside the truck.
“You cannot replace the experience that we have under FedEx when it comes to cross-border trucking. We have a view from the ground in each location and a macro view because we operate across multiple points," he added.
He said facilities along this corridor are already built for high-volume automated sorting, anchored by the FedEx South Pacific Regional Hub in Singapore, a 26,265-square-metre facility capable of sorting up to 12,000 packages per hour and the 2,676-square-metre FedEx Senai facility in Johor, which sorts up to 1,600 packages per hour using automated conveyor systems.
He said that to absorb seasonal demand surges during end-of-year peak periods, FedEx can dynamically scale up its cross-border routes into Singapore by up to 10 per cent through flexible fleet deployment, ensuring uninterrupted trade connectivity across the corridor.
According to FedEx, alongside operational scaling, the integrator has committed to carbon-neutral global operations by 2040 and is transitioning 30 per cent of its 140-vehicle fleet in Singapore to electric vehicles (EVs), with 43 EVs deployed across Malaysia.
Meanwhile, Woon said environmental stewardship remains integral to modern supply chains, noting that FedEx boxes are designed to be easy to recycle and that around 30 per cent are made from recycled materials.
“The first step, long before everyone started, was making sure the composite of our corrugated boxes made them easy to recycle.
“The next and more difficult step was injecting recycled material back into the boxes. That is a good example of trying to close the loop,” Woon said.
He said plastics remain a challenge, with some materials such as aircraft-use sheeting subject to thickness requirements driven by compliance, while stretch wrap is collected and recycled and pallets are repaired for reuse where possible.
According to FedEx, to further eliminate border bottlenecks without compromising national security, logistics providers are advocating for the wider implementation of automated drive-through X-ray inspection tunnels at customs checkpoints.
FedEx Singapore managing director Eric Tan said such systems, showcased by Singapore Customs and the Immigration and Checkpoints Authority at their annual work plan seminar, allow heavy goods vehicles to be screened en route without manual offloading.
“The lorry drivers drive through what is almost like a tunnel, and the best part is that they do not need to disembark and open the tailgate to allow officers to look inside, which takes a lot of time.
“Honestly, it is quite forward-thinking and quite game-changing,” Tan said.
Tan said that a second initiative, automated cargo permit clearance, is being shared with Malaysian counterparts, with both sides working towards collaboration that benefits traffic in both directions.
Additionally, Woon said the industry’s push is for cargo to move as smoothly as passengers already do, while keeping enforcement controls intact.
“We are advocates for the cargo, in case people forget that cargo also needs to cross on time.
“What we want to push for is seamless trade for any legitimate business, and the controls that need to be in place, we are in full support of ensuring those are still there,” Woon noted.
-- BERNAMA