Kuehne+Nagel and City Zone Express have taken the lead as anchor tenants at the new Bukit Kayu Hitam Inland Container Depot (BKH ICD) Hub, which commenced operations on May 1, 2025. This strategic move underscores our commitment to shaping the future of cross-border logistics between Malaysia and Thailand.

In 2018, Malaysia launched the Special Border Economic Zone (SBEZ) in Bukit Kayu Hitam, aiming to enhance cross-border infrastructure and tap into southern Thailand’s economic momentum. Spanning 11,619 acres, the development includes a land port, a free trade zone, and a commercial area.

Although the concept was initiated in 2018, the COVID-19 pandemic temporarily halted progress. The project resumed in 2021 and commenced operations in Q1 2025. Now known as the Bukit Kayu Hitam Inland Container Depot (BKH ICD) Hub, the site is fully operational, featuring Free Commercial Zone warehouses less than 500 metres from Malaysia’s customs checkpoint. The hub also includes:

• An open yard with capacity for 250,000 TEUs
• Container repair facilities
• LOLO services
• Reefer container systems
• VGM capabilities
• Dedicated customs lanes operating 24/7

The BKH ICD Hub also supports Penang Port's Transshipment Hub Strategy, with plans to establish an Academic Logistics Institute.

Our early engagement with the BKH ICD team, established presence in Penang and Bukit Kayu Hitam, and strong foothold in cross-border movements between Thailand and Malaysia positioned us well to lead this initiative. We have already set up facilities for customs clearance documentation and a yard, which are now consolidated under the BKH ICD roof. With a dedicated space of 1,700 sqm, this partnership will enable faster clearance through:

• In-house customs capabilities
• Seamless cross-docking
• LTL (Less-than-truckload) shipment consolidation
• A dedicated lane for Thai trucks post-clearance

Beyond operational benefits, we are also committed to driver welfare. The hub features a trucker’s lounge and on-site restaurants to promote rest, reduce fatigue, and enhance productivity.

Chellan Ganesan, Head of Road Logistics, Asia and the Pacific, Kuehne+Nagel commented, “We see this as a strategic fit to our Roadmap 2026 and Vision 2030 initiatives in advancing cross-border road transportation in this corridor. With BKH ICD, we are setting a new standard for regional logistics and paving the way for a smarter, more efficient future for cross-border movements.

Analysts predict that land transport via Thai-Malaysian border checkpoints will soon surpass marine transport in efficiency. Malaysia and Thailand are targeting US$30 billion in bilateral trade by 2027, driven by the rise of international cross-border trucking. Our partnership is both timely and transformative¹.”

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David Roussiere, Managing Director of Kuehne+Nagel Thailand, Cambodia, and Myanmar (centre),
receiving the award from Micah Shepard, President of Schaeffler Vehicle Lifetime Solutions Asia Pacific (right).

The Central Logistics Center supports Schaeffler’s operations by streamlining kitting, goods receiving, and shipping processes. Designed to optimise logistics efficiency and enhance delivery capacity, the facility ensures consistently high service levels for Schaeffler’s customers across the Asia-Pacific region.

This recognition reflects Kuehne+Nagel’s unwavering commitment to operational excellence, demonstrated through its prompt responses to customer requirements, tailored logistics solutions, and problem-solving approach. Our team is grateful for the opportunity to support Schaeffler in optimising its warehousing network, and we remain committed to working closely together to strengthen a seamless and efficient supply chain.

“When it comes to operational excellence, there is no greater affirmation than the recognition of our customers,” said David Roussiere, Managing Director of Kuehne+Nagel Thailand, Cambodia, and Myanmar. “This award is a testament to the dedication of our Contract Logistics team, and everyone involved in delivering exceptional service. Thank you for continuously setting new benchmarks for excellence and showcasing the strength of Kuehne+Nagel Thailand on a larger stage.”

This achievement highlights Kuehne+Nagel Thailand’s commitment to delivering world-class logistics solutions and strengthening long-term partnerships with industry leaders like Schaeffler.

To support its growth ambitions in Asia, Kuehne+Nagel opens a new 2,800 sqm Container Freight Station (CFS) in Bangkok, Thailand, strategically located near Laem Chabang Port.

Laem Chabang, Thailand’s largest deep-water port, is a vital gateway for international trade, particularly on the Asia-North America and Asia-Europe routes. By expanding its Less-than-Container Load (LCL) and integrated logistics capabilities in this location, Kuehne+Nagel aims to increase efficiency and lower the environmental impact of logistics operations. With the new CFS, Kuehne+Nagel provides faster and more efficient cargo consolidation and deconsolidation while the use of electric Vehicle (EV) transportation for all LCL pick-ups across Thailand reduces carbon emissions.

This investment aligns with the Port Authority of Thailand’s (PAT) vision to transform all its ports into a smart, sustainable hub by 2030. By integrating EV transportation, Kuehne+Nagel is actively supporting PAT’s carbon neutrality roadmap and broader infrastructure upgrades, contributing to the local development of Thailand.

“Laem Chabang Port plays a pivotal role in global trade and regional cargo distribution. As part of our Roadmap 2026, this investment reinforces Thailand’s role as a key logistics hub while driving innovation and sustainability in the global supply chain,” said David Roussiere, Managing Director of Kuehne+Nagel Thailand, Cambodia, and Myanmar.

Kuehne+Nagel UAE inaugurates a custom-designed hub for Rolls-Royce aircraft engines in Dubai to streamline engine deliveries across the Middle East.

Rolls-Royce is a leading global supplier of aircraft engines in the civil aerospace sector. With distribution centres in the Netherlands, the U.S., and the U.K., the expansion of its UAE centre is aimed at preparing for the opening of the new Al Maktoum Airport in Dubai and the anticipated increase in air traffic.

The 3,000 sqm facility, located within Kuehne+Nagel’s existing hub in Dubai South, has undergone extensive refurbishment to optimise fulfilment operations. A specially fitted electric overhead traveling crane with a lifting capacity of 25 tons, along with a parallel 64-metre-long runway and traveling bridge, facilitates the movement of heavy equipment, as well as the loading and unloading of trucks. This automated solution enhances safety and security for both staff and goods while improving overall efficiency.

The centre will house the entire Rolls-Royce Trent high-bypass turbofan family, from smaller engines to Trent XWB, Rolls-Royce’s most powerful engine, with a 3-meter diameter fan and a weight of nearly 17 tons, as well as spare parts, units and nacelles.

During the inauguration ceremony on February 27th, 2025, Adrian Cuthell, Senior Vice President On-Wing Operations and Logistics at Rolls-Royce states: „The strategic location, reliability, and trust in Kuehne+Nagel’s logistics solutions, along with our long-standing global partnership, were key factors in selecting them to operate our hub in Dubai." 

"We are thrilled to see this facility designed and fully re-fitted to Rolls-Royce’s specifications. Our teams have worked diligently to ensure every aspect of the design is carefully tailored to support both the fulfilment and delivery teams operating in the centre, as well as the engines themselves, which, despite their size and weight, require the most delicate handling,” concludes Stephanie Kearney, Head of EMEA and Global Operating Standards Contract Logistics at Kuehne+Nagel.

Kuehne+Nagel supports Rolls-Royce across multiple locations, including the USA, Europe, the Middle East, and Asia, by delivering customised logistics solutions supporting their aerospace logistics needs. 

Schaeffler Vehicle Lifetime Solutions Asia Pacific has selected Kuehne+Nagel to manage its Central Logistics Center in Thailand. This 3,000sqm assembly and packaging facility, strategically located in the Si Racha free zone district is situated close to the Schaeffler manufacturing plant in Chonburi. This Central Logistics Center will handle operational activities including kitting, goods receiving, and shipping. It is designed to optimise logistics processes and increase delivery capacity, ensuring consistently high delivery service levels for the customers of Schaeffler Vehicle Lifetime Solutions division across Asia Pacific.

Micah Shepard, President of Schaeffler Vehicle Lifetime Solutions Asia Pacific, states: “This Central Logistics Center will serve as a key supply hub for the Asia Pacific region.  With Kuehne+Nagel as our experienced and reliable logistics partner, our goal is to improve the accessibility and efficiency of spare parts distribution by increasing our focus on innovation, progress, and customer orientation.”

“Our long-term partnership with Schaeffler has grown over the years thanks to our shared commitment and collaborative spirit. Together, we have achieved remarkable progress and will continue to build on this solid foundation, embracing the opportunities ahead,” says David Roussiere, Managing Director of Kuehne+Nagel Thailand, Cambodia and Myanmar.

As part of its Roadmap 2026, Kuehne+Nagel identifies Asia as a key growth area, with Thailand playing an important role. The company stays connected to its customers by investing locally and building even stronger partnerships, ensuring they meet their evolving needs. A recent example is the new distribution centre in the Suvarnabhumi Airport free trade zone in Bangkok, Thailand.