Sagawa to start parcel delivery service in China
Sumitomo Corp. and Sagawa Express Co. said Tuesday their joint venture with a Chinese concern will start door-to-door parcel delivery services in Shanghai on Wednesday.
The venture, Shanghai Dazhong Sagawa Logistics Co., China’s first door-to-door parcel delivery company, was set up last summer with the Chinese company, Shanghai Dazhong Transportation Co.
The venture, which will kick off operations with a convoy of 70 trucks and a 100-person workforce for corporate clients, envisions expanding the network of its parcel delivery services throughout China in the future, they said.
Since a growing number of non-Chinese manufacturers and large retailers are setting up business bases in China, demand is burgeoning for parcel delivery services.
To meet such demand, Sagawa and Sumitomo eye pushing the new business on the strength of their experiences accumulated in Japan, they said.
The venture envisions providing door-to-door parcel delivery services for individual customers in the near future, officials said.
The venture participants plan to expand the size of the truck convoy and workforce to 160 vehicles and 230 persons by 2005, with revenues projections at 70 million yuan or 1.1 billion yen, they said.
AP-NY-01-07-03 0735EST
FDMSKYviaNewsEdge
