Sino-Japan venture at Yantai Port
SIX Japanese companies have teamed up with Chinese investors to set up a joint-venture logistics firm in China's Yantai Port to handle chilled, frozen and consolidated cargo.
Demand for facilities for handling chilled and frozen cargo and consolidated cargo in the Chinese port is rising fast.
The new company, Yantai Gang He International Logistics and Refrigeration Co, will be capitalised at about US$2.3 million.
The companies are Katokichi Co, Nissho Iwai Corp, Uno Corp, K K Hyoshoku, Ishibashi Sangyo Inc and Wakachiku Construction Co.
Of the $2.3 million, 51 per cent would be provided by the Japanese firms with Katokichi contributing 17.4 per cent, Nissho Iwai, Uno and Hyoshoku 8.7 per cent each, Ishibashi Sangyo 4.3 per cent and Wakachiku Construction three per cent.
The three Chinese participants are Yantai Port Authorities, Yantai Port Dahai Corp, which specialises in the handling of frozen cargo in Yantai Port, and the Yantai branch of the China Ocean Shipping Agency. The new company will have a 2,200-square-metre warehouse for chilled and frozen cargo and a 1,300-sqm yard for handling consolidated cargo on a 3,500 sqm site.
Equipped with various forklifts and other cargo-handling machines, it will handle not only chilled and frozen goods, such as vegetables, fruits, fish and shellfish, but also general cargo.
Chilled and frozen cargo for export and import have increased sharply in recent years at Yantai Port.
The volume of general cargo at the port showed a sharp increase of 22 per cent last year.
Meanwhile, Nippon Express company's (Nittsu) joint venture with Chinese interests Nittsu Sinotrans Logistics Dalian (NSLD) has started providing container land-transport services on the mainland.
With a land transport business licence covering the whole of China, the joint venture is involved in international intermodal operations.
Established in July 1992, NSLD obtained a licence to engage in freight forwarding in China and has since been providing intermodal operations combined with warehousing services.
Having obtained a land transport licence this time, NSLD intends to respond aggressively to demand for distribution services not only in its intermodal operations between Japan and China, but also in cross trade with China.
NSLD will provide international intermodal services using five registered prime movers and chassis to transport materials and parts as well as exports to and from Japanese manufacturers doing business in the Dalian economic and technical development zone and other industrial complexes.
In the long term, NSLD will consider increasing the number of its vehicles and expand its area of operation as necessary.
Shanghai Nittsu-Sinotrans Logistics Co, which Nittsu established in the Shanghai Pudong Waigaogiao Free Trade Zone, has been in business since April.
NSLD has applied for a land transportation licence covering the whole of China.