Airport Uptake of Smart Tech - Export Sales Growth of 300%
Airport Uptake of Smart Technology Sees Export Sales Growth of 300%, with Asia the Jewel in the Crown
BCS Airport Systems has picked up a multi-million dollar extension to its contract to complete Malaysia’s KLIA2 baggage handling system, on the back of a surprise termination of another contractor by Malaysia Airports Holdings Bhd.
The additional work will bring BCS’ total project value to around NZ$40m, making it one of the largest airport projects of its type ever awarded to a New Zealand company.
Original sub-contractor Matromatic Handling Systems had experienced financial difficulties which saw it go into receivership last month. Their work has now been awarded to BCS, with the contract sum increasing because it had been awarded more than two years ago.
Patrick Teo BCS Group CEO said the project hit the ‘sweet spot’ for the company, which had been gearing up for growth in Malaysia, following the KLIA2 win three years ago, and the subsequent approval by the Malaysian Government giving BCS Multimedia Super Corridor (MSC) status.
“We’ve had our regional head office there for over a year now with around 30 full time staff, and more recently opened a factory that will see BCS headquartered in a government designated zone, an area reserved for high-tech companies with global potential.
MSC status confers special rights for doing business in Malaysia and was validated by the KLIA2 contract extension.
BCS has been expanding rapidly into SE Asia, with the regional headquarters strategy to be situated closer to Asian airport and airline clients to deliver higher levels of service resulting in over $100 million of new business being written this year. Overall BCS group global export sales outside Australia/NZ have increased 300% over the last two years.
BCS also recently announced the opening of a new office in Singapore as part of its continued Asia growth strategy.
In the past year alone, BCS has picked up major baggage handling projects for airports spanning Asia including Malaysia, Indonesia, Cambodia China and the Philippines. Aside from its Asia growth strategy BCS is also seeing strong growth in the North and Central American markets
Mr Teo commented “An increasing number of large European companies are now focussing on Asia as well and the competition is tough so we need to be both agile and innovative to compete”.
BCS’s strategy of using innovation to differentiate has already attracted a lot of attention in new markets due to the operational benefits afforded to airports and airlines by products like BAGgate automated check-in and its sophisticated software products like Airflow G5 and Sym3 for enhanced productivity and efficiency.
With numerous export awards to its name, BCS Group has continued to focus its business model on providing elegant customer-driven solutions. The international materials handling market is worth over $3 billion per year, requiring BCS Group to focus its marketing efforts on select key markets rather than having a scatter-gun approach.
Mr Teo said BCS Group’s international expansion and growth has benefited significantly from the support received from the NZ Government including from Callaghan Innovation which has supported the development of our suite of leading edge software products, NZ Trade and Enterprise for market development support, NZ Export Credit Office with project guarantees, and MFAT with the advice and input of NZ Ambassadors and High Commissioners within the countries we operate.