Express aims at Japanese in Shanghai
THE growing number of Japanese companies operating in Shanghai's booming industrial area of Pudong has prompted Nippon Express to set up a subsidiary in Shanghai, company officials said.
The new company, a joint venture with two local companies, will be established in April.
Nippon Express already has a subsidiary operation in Dalian.
The new company would serve the transport needs of the Japanese companies in the Shanghai area.
''Japanese companies feel more comfortable working with Japanese freight forwarders,'' a Nippon Express official said.
Nippon Express will own 49 per cent of the joint venture, capitalised at US$4 million.
Company officials declined to name the Chinese partners.
It will initially handle cargo between China and Japan.
The business scope will be expanded later to include three-way operations between China, Southeast Asia and Japan, and eventually between China, the US and Europe.
Nippon Express said it hoped to achieve an operating income of up to $600,000 in the first year.
Meanwhile, Japanese trading house Itochu Corp has revealed plans to set up a distribution joint venture in Shanghai with the state-run China Ocean Shipping Agency, in which other Japanese and Chinese companies are also investing.
The new company, to be set up in April, is expected to begin operations later this year.
It will own bonded and distribution warehouses and a container yard and will provide trucking services.
The Chinese companies will contribute 60 per cent of the initial capital of $12 million.
Itochu will contribute 19 per cent, Konoike Transportation Co 16 per cent and Mitsui OSK Lines five per cent.
Two other Japanese trading houses are starting warehouse and transport businesses in Thailand and Indonesia to meet the growing demand from Japanese manufacturers that have moved their operations there because of the rising yen.
Nissho Iwai Corp is setting up a joint venture with Maruzen Showa Unyu of Japan and Thailand's state-run Unithai Line Public Co to manage a warehouse and container yard in an industrial zone near Bangkok.
The Thai shipping company will invest 50 per cent of the joint venture's capital of 60 million baht (about HK$18.4 million).
Nissho Iwai will put up 40 per cent, while Maruzen will contribute the remaining 10 per cent.
The joint venture is expected to start operations next year.
Sumitomo Corp will set up a joint-venture distribution centre in an industrial area near Jakarta next month with P.T. Hanoman Sakti of Indonesia, Japan's Mitsui OSK Lines and Sumitomo Warehouse Co.
The joint venture will transport cargo by container trucks from the industrial area to the port.
The new company will be capitalised at $2.5 million.
Sumitomo Corp will own 45 per cent, the Indonesian company 40 per cent, Mitsui 10 per cent and Sumitomo Warehouse five per cent.