Excel Samudera is a small warehouse that operates in Kota Kinabalu with plans to establish ahuge distribution centre for frozen foods in Sabah. The company would sell directly to grocery and supermarkets, delivering the products with its own lorries and highly computerised in dealing with orders. Excel Samudera is working on a business plan for its growth strategy.

As an outside consultant to Excel Samudera, give your advice on how the company can structure the capital requirement for the new idea. Give relevant cost structures that reflect on the proposed new idea.