Honda now using rail for Thai-Malaysia parts transport

honda-ktm

Honda Malaysia has switched to rail-based transport for delivery of parts between Thailand and Malaysia, via Thailand National Railways (SRT) and Keretapi Tanah Melayu (KTM). With this move, HM becomes the first Honda outpost to switch to rail-based delivery for optimal logistics.

Honda Malaysia’s production volume is anticipated to increase from the current 50,000 units to 100,000 units annually by 2016. Currently, 25 to 30 containers are being transported from Thailand to Malaysia on a daily basis. And this is expected to increase to 120 containers per day in line with HM’s future production plans.

This initiative is also in line with Honda’s global environmental target of 30% reduction in CO2 emissions by Honda products by 2020. Just by changing the mode of transportation from trucks/ships to trains, CO2 emissions have been reduced by 60%. Honda says that rail is also more cost effective (logistics cost to be halved within two years), with lower logistic risks, wastage and damages. KTM uses a GPS tracking system.

Delivery time will be shortened, too. It takes 2.5 days for goods to be delivered from Thailand to Malaysia via rail, half a day faster than using trucks. Shipping takes seven days. This helps increase efficiency and shorten the waiting period for customers, and Honda gets to reduce stock in hand by six days.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Sam Loo on Dec 09, 2013 at 3:32 pm

    Great Move by Honda.

    This will ensure that higher quality parts (with Jap dolby mark) coming into Malaysia for Honda vehicles, and to ensure a steady supply for after sales use.

    As for kimchis, good luck, as local kimchi after sales mechants are not willing to bring in kimchi spares as there is no demand for used kimchis, especially now that 1 year old kimchis are exported to 3rd world countries

    Well-loved. Like or Dislike: Thumb up 69 Thumb down 15
    • Aravind on Dec 09, 2013 at 6:33 pm

      Hahaha :)

      Like or Dislike: Thumb up 2 Thumb down 3
    • Sam Loo on Dec 10, 2013 at 9:24 am

      Fake Sam Loo above. People always trying to impersonate me. Probably K5 owner that was shown the broomstick when he tried to trade his car in.

      Anyway, Honda is full of bullshit. The rail won’t save money. It is the greedy Honda bosses reaping profit in Malaysia. Honda Accord 2.4 High Spec with 8 airbags sells for US$22,000. That is pure Japan CBU, so high in quality.

      Here, our caplang CKD 100% Made in Malaysia (except for the engine) Honda Accord is RM180,000. How is this so when CKD gets lesser tax benefit and since its Buatan Malaysia, it should have a cheaper price. How US$22,000 (about RM65,000) can be sold here 3x the price at RM180,000 when it is using local Malaysian parts?

      The CRV 2.4 also is about US23,000. Here, it is RM180,000. Lesser airbags, lesser safety features, lesser spec.

      Honda Malaysia, don’t tipu people in Malaysia lah.

      Like or Dislike: Thumb up 16 Thumb down 21
    • SamShowedMeTheHilux on Dec 10, 2013 at 11:22 am

      Permanent hailat face K5 owner.

      I showed a Forte owner 2 broomsticks yesterday and still the bugger din believe me that used car dealers don’t accept KIA anymore.

      Face the music. KIA buyers are the ultimate sorhai tailan ngong

      Like or Dislike: Thumb up 16 Thumb down 1
    • what’s so important about this piece of news? will there be any savings translated and passed down to the consumers? if no, Honda pls go and fly kite.

      Like or Dislike: Thumb up 2 Thumb down 0
  • EnergyAnalyst on Dec 09, 2013 at 3:46 pm

    Hmmm….KTM was in a takeover proposal by MMC last year that has gone quite after the union protest it fervently. With this development one castor wonder what else is cooking with the DRB connected Honda Malaysia

    Like or Dislike: Thumb up 9 Thumb down 3
  • sam69 on Dec 09, 2013 at 3:55 pm

    Honda. The power of Thailand.

    Like or Dislike: Thumb up 19 Thumb down 4
  • jolly_idiot on Dec 09, 2013 at 4:03 pm

    Any cheaper in car price or not? If no, then we don’t even care if they use rocket to deliver goods.

    Well-loved. Like or Dislike: Thumb up 77 Thumb down 7
    • Sam Loo on Dec 09, 2013 at 5:13 pm

      What any consumer wants would be minimal maintenance on their vehicles, both money wise and frequency wise.

      For kimchis, not only will they not have the above but the durability and availability of parts is a big question mark. Might as well get a Proton or Perodua,, as you will be paying a lot less CAPEX and most importantly, National Cars have a much better resale value compared with kimchis

      Like or Dislike: Thumb up 42 Thumb down 9
      • Why buy honda then? There’s gonna be Proton Accord soon anyway.

        Like or Dislike: Thumb up 1 Thumb down 15
      • SamShowedMeTheHilux on Dec 10, 2013 at 1:04 am

        But there is no Proton City (not the Tanjung Malim one), Proton Civic, Proton Stepwagon, Proton Ellision, Proton Prelude, Proton S2000, Proton CRX, Proton CRZ or Proton Odyssey wor

        Like or Dislike: Thumb up 19 Thumb down 3
    • Lpost on Dec 09, 2013 at 7:09 pm

      should care about environmental issues too, not just about money. Good move Honda!

      Like or Dislike: Thumb up 7 Thumb down 1
  • Good move Honda! next move is to show some reduction in the price tag

    Like or Dislike: Thumb up 38 Thumb down 0
  • Quote: ‘Honda Malaysia’s production volume is anticipated to increase from the current 50,000 units to 100,000 units annually by 2016. Currently, 25 to 30 containers are being transported from Thailand to Malaysia on a daily basis. And this is expected to increase to 120 containers per day in line with HM’s future production plans.’

    50,000 Honda cars = 25 to 30 containers from Thailand
    100,000 Honda cars = 120 containers from Thailand?

    Does it mean that in future Honda cars will be entirely made of parts from Thailand? Malaysians will only need a screwdriver to assemble them, as no local parts are used?

    Like or Dislike: Thumb up 7 Thumb down 4
    • b sensible on Dec 09, 2013 at 10:18 pm

      I think the spare parts are available readily in Thailand compared to msia as more manufacturers have their base setup in the former. why worry about spare parts from Thailand? aren’t they genuine! otherwise Thailand will be the land of junk cars!

      Like or Dislike: Thumb up 3 Thumb down 0
      • “I think the spare parts are available readily in Thailand compared to msia”

        And how do they build 50,000 cars with only 25 to 30 containers daily from Thailand NOW?

        Why do they need for two times more cars four times more parts from Thailand?

        Like or Dislike: Thumb up 0 Thumb down 0
    • Does it matter?

      Most important = Quality.
      Be it Malaysia or Thailand part.

      u dont be extrimist can anot?

      Like or Dislike: Thumb up 2 Thumb down 0
      • Johnson C. on Dec 10, 2013 at 9:34 am

        What’s he means is do Honda not buying more parts from Thailand instead of Malaysia.

        Like or Dislike: Thumb up 1 Thumb down 0
    • Actually it is not too hard to understand why 120 containers daily is needed for future production plans. Let’s do some estimation.

      2013 – 50,000 units
      2014 – 67,000 units
      2015 – 84,000 units
      2016- 100,000 units

      All of the units produced and sold currently would require spare parts in the future, which could be transported inside the 120 containers. This move could also turn DRB-Hicom into the biggest customer of delivery-via-rail.

      Like or Dislike: Thumb up 1 Thumb down 1
      • You can do math?

        50,000 cars = 25-30 containers
        100,000 cars = 120 containers

        If Honda need 120 containers spareparts DAILY for it’s fleet of cars, then it’s better not to buy a Honda… ;)

        Like or Dislike: Thumb up 0 Thumb down 1
    • Moreover, the electrified double-track railway to Padang Besar would be ready in 2016, which further reduces dependence on roads and highways for delivery. Honda can also deliver Thai-made cars using the railway rather than through ships when the railway is opened.

      Such move is so much welcomed to reduce number of heavy vehicles on our North-South Highway.

      Like or Dislike: Thumb up 6 Thumb down 1
  • parang on Dec 09, 2013 at 6:54 pm

    With many advantages mentiond. Question is why now?

    Like or Dislike: Thumb up 6 Thumb down 1
  • hehehe on Dec 09, 2013 at 7:37 pm

    Would Honda smuggle stolen car back to Thailand?

    Like or Dislike: Thumb up 3 Thumb down 2
    • SamShowedMeTheHilux on Dec 10, 2013 at 1:00 am

      One thing for sure is that no blind thief will ever steal a kimchi, coz its does not much value in any markets

      Like or Dislike: Thumb up 15 Thumb down 2
  • b sensible on Dec 09, 2013 at 10:14 pm

    one thing doesn’t come to my mind – why ktm is still losing money? ktm has so much landbanks, it can use its landbanks as stockyard for the cars or containers, or act as holding area before transporting to customers, or assemble the vehicle on behalf of OEM! there’s so much more opportunities for ktm to explore. besides hope this idea can grow small cities like kuala kangsar, taiping, gurun…

    Like or Dislike: Thumb up 9 Thumb down 1
  • BeemerFreak on Dec 10, 2013 at 12:19 am

    Without the existence of Proton, trains will be heading the other way instead.

    Like or Dislike: Thumb up 6 Thumb down 3
  • casta on Dec 10, 2013 at 9:17 am

    Easy to talk about KTM land and etc..please bear in mind the asset belongs to RAC not KTM..they just the operator..apart from that among the main issue is about the single track network beyond Ipoh (at the moment)..eventhough sooner it will be extended to the border please keep in mind SRT shall play their part as well as the line in Thai belongs to them..It does happen last time when the trains arrive on-time at border but the cargo has to stay 5 days there due to issues on SRT line & locomotives..KTM used to operate Brickfields Yard for logistics incl warehousing activities till mid 90’es until KL Sentral was develop as commercial and office lots and this doesn’t include the Sentul workshop which has been develop as residential area recently and the main workshop had to be moved to Batu Gajah…

    Like or Dislike: Thumb up 4 Thumb down 0
 

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