KUALA LUMPUR (Jan 23): Sin-Kung Logistics Bhd (KL:SINKUNG) said it has initiated arbitration proceedings against Teleport Everywhere Pte Ltd, the logistics arm of Capital A Bhd (KL:CAPITALA), over a dispute relating to trucking services for Capital A's cargo operations.
The notice of arbitration served on Friday claims Teleport breached an agreement signed in January 2023 that appointed Sin-Kung as the operator to transport cargoes for flights under AirAsia for designated routes in Malaysia and Singapore, according to the logistics company in a bourse filing.
The dispute centres on Teleport’s move to engage other third-party trucking providers and its plan to introduce a “multi-providers model”, which Sin-Kung claims violates the exclusivity terms of the agreement.
Sin-Kung said it had previously issued a notice on Dec 5, 2025 demanding that Teleport remedy the alleged breach within 60 days, but Teleport replied four days later denying any breach and maintaining that the agreement was “unequivocally non-exclusive”.
In the arbitration proceedings under the Asian International Arbitration Centre rules, Sin-Kung is seeking several declarations, including confirmation that it is the sole exclusive operator, that Teleport breached the agreement, and that it is discharged from further performance of its obligations under the agreement.
It is also claiming damages for losses allegedly suffered by the breach, including loss of profit estimated at RM4 million per year and at least RM7 million in costs incurred to fulfil its contractual obligations, such as truck purchases and staffing requirements.
Shares in Sin-Kung ended half a sen or 5.56% lower at 8.5 sen on Friday, valuing the company at RM102 million.