Midsize Japanese logistics companies are expanding operations in Southeast Asia to tap the market's growth potential.
Chilled & Frozen Logistics Holdings will spend $13.5 million to triple its storage capacity in Vietnam by setting up a refrigerated warehouse in Binh Duong Province, near Ho Chi Minh City. The facility, slated for completion in February, will span 13,400 sq. meters, with storage for around 39,000 tons of chilled foods and other items. A shipping joint venture with a local partner will be created in August for seamless continuity between storage and transport operations.
Meito Transportation, a unit of Chilled & Frozen Logistics, is strong in delivery of chilled foods to convenience stores and other retailers. The temperature control and other know-how built in Japan will used to cultivate the Vietnamese market. A service of packaging frozen foods and other items into small quantities also may be offered.
Meanwhile, Fukuyama Transporting bought Malaysian logistics company E.H. Utara Holdings for $8.8 million at the end of May. The company plans to introduce its Japanese cargo management system for locating items, applying it even for international delivery via Singapore, Thailand and elsewhere.
The rise of online shopping is bolstering the logistics market in Japan. But the country's shrinking population may contract the market over the medium to long term, so midtier logistics companies are boosting operations in the growth region of Southeast Asia, as have larger competitors like Nippon Express.
Source : Nikkei
Keyword : Japanese logistics, midtiers cultivate Vietnam, Malaysia.
