Kintetsu World Express forms joint venture with Indian delivery firm
Japanese freight forwarding company Kintetsu World Express (KWE) Group has agreed to form a joint venture with Indian courier and supply chain logistics firm Gati Ltd.
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Japanese express service ties create strange bedfellows
The shifting express landscape in Japan is producing some unusual alliances. Concern about the international integrators encroaching on their turf has induced domestic rivals to form pacts with one another.
On December 18, All Nippon Airways, Kintetsu World Express and Nippon Express signed a memorandum of understanding to set up a joint venture company for international business-to-business express delivery service in Asia. Operations of the new company are slated to commence on April 1 of this year.
ANA will have a 34 percent stake in the new company and Nippon Express and Kintetsu will each take 28 percent, with the remaining 10 percent going to other forwarding companies.
The partners pointed to growth of international logistics and the need for integrated strategic distribution services as the main reasons for their alliance. They stressed the need in Asia for reliable logistics services that can support businesses with rapidly expanding production bases.
The new partnership seems to be a conflict of interest for ANA, which already formed a joint venture cargo airline with Japan Post that took to the air last year with a fleet of B767 freighters. However, the new carrier, which flies to a number of Asian destinations as well as to the US, has signalled that Japan Post’s volumes are not enough to fill the aircraft, so it has been looking for partners to generate more cargo. A planned partnership between Japan Post and TNT has failed to materialise.
Read MoreKintetsu Express considers shipping tie with Nippon Express
Nippon Express Co. and Kintetsu World Express Inc. said Tuesday they are studying joint air transport services from Japan to other Asian countries to take advantage of growing demand for shipping services within Asia.
The two Japanese firms are in talks to develop a small package shipping service that would deliver items such as samples and documents.
Japanese transport companies have lagged behind their U.S. and European competitors such as DHL and FedEx Corp.
Kintetsu World, for instance, provides shipping services to other Asian countries from Japan but focuses mostly on large shipping contracts such as delivering electronic parts, a Kintetsu World spokeswoman said.
Growth in demand for commercial shipping within Asia has been growing at 7 pct to 8 pct a year, Nippon Express and Kintetsu said in a joint press release.
The Nikkei reported that the two firms and Japan Airlines Corp. are expected to form a tie-up in international package shipments from Japan to other parts of Asia.
But the Kintetsu World spokeswoman denied the report, saying that the two transport firms haven’t decided which airline they may want to use for their potential new service. JAL wasn’t immediately available to comment on whether the airline is involved in talks with the two transport firms.
Read MoreSagawa, Kintetsu dissolve business alliance
Sagawa Express Co. and Kintetsu World Express Inc. said Friday they have dissolved their business alliance on Thursday. The major delivery firms, which agreed on Jan. 29, 2001 to cooperate in domestic and international cargo operations, found after five years that the partnership was not providing the benefits expected, the two said.
Read MoreKintetsu World Express and Kuehne & Nagel in strategic partnership
Kuehne & Nagel and Kintetsu World Express have entered into a strategic partnership in Latin American markets.
Effective October 1, 2003, Kuehne & Nagel will assume the book of business of KWE’s affiliated companies in Brazil, Peru, Venezuela, and Mexico.
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