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DHL to build $50m logistics centre in Japan

Tokyo, April 3, 2013

Logistics company DHL has announced that its supply chain division in Japan will start construction work for its new Sagamihara Logistics Center, with around 5 billion yen ($50 million) to be invested in the development over the next 10 years.

Strategically located in Sagamihara City, Kanagawa Prefecture, the facility is a stepping stone to further business expansion, a statement from the company said.

With the addition of the facility, DHL Supply Chain will expand its total warehousing space in Japan by approximately 20 per cent. Construction starts in April 2013, with a target completion date of March 2014.

The Sagamihara Logistics Center is a multi-user hub facility with the warehousing area of approximately 44,000 sqm (13,000 tsubo). Supply chains in the consumer retail industry, including fashion and apparel, are becoming more efficient and globalised amidst growing needs for e-commerce, causing businesses to seek advanced expertise, quality, speed and efficiency in logistics services.

DHL Supply Chain will use this facility, and apply its global best practices, in-depth know-how for the Japanese market and industry expertise to deliver optimum logistics services, primarily for the consumer retail industry, for further business expansion, the statement said.

The site is close to National Route No16 and the Sagamihara Interchange of the Keno Expressway (Metropolitan Inter-City Expressway, to be completed in FY2013 – FY2014), offering superior access to Japan's largest commercial zone, the Tokyo metropolitan area, as well as to airports and port facilities.

With close proximity to the Ebina Interchange of the Tomei Expressway, the facility is also well-located for convenient distribution to western Japan. It is strategically located to maximise convenience for many customers in the consumer retail sector, including fashion and apparel, as well as the manufacturing sector, which requires efficient access to the metropolitan area and markets in central and western Japan.

Jointly developed by Kenedix, Inc and Itochu Corporation, the facility adopts the build-to-suit (BTS) approach to allow DHL supply chain to provide optimum solutions. DHL supply chain is to lease the entire property for 10 years, starting April 2014.

Victor Mok, CEO, DHL Supply Chain North Asia, said: "With Asia’s influence becoming more and more evident in the world economy, the consumer retail industry is placing a growing emphasis on conquering the Asian market. This investment reflects DHL's market superiority and confidence in its future growth potential. DHL will continue to provide services of the world's highest level in various markets."

"The consumer retail industry involves fast-paced changes in market demand, and therefore has no time to waste in product introduction,” said Shuichi Kawamura, president of DHL Supply Chain Japan. “For this reason, it is one of the industries that benefit from the strengths of the DHL Supply Chain, which boasts a global network of the world's largest scale and process under advanced quality control.”

“As a leading company in 3PL, we will continue to deliver supply chain solutions that go one step ahead of customer needs so as to assist our customers' business and achieve further growth together."

Taisuke Miyajima, president, Kenedix, said: "Participation in this project has a special significance for us in that it marks the start of a business relationship with a powerful global partner, DHL Supply Chain.”

“We consider planning to work together in reinforcing business operations in Japan and abroad to develop logistics facilities that meet market needs and carry out asset management."

Takashi Suzuki, general manager of Itochu's construction & realty department No 3, said: "This is an important investment project that directly and indirectly assists the growth of a company with a competitive edge, as we actively pursue real estate development and investments in Japan and the rest of Asia.”

“In order to support the advancement of global corporations, we are committed to making further involvement in the proposal, development and investments in BTS-type logistics facilities."

With far-reaching knowledge and experiences in a range of industries, DHL Supply Chain will continue to use cutting-edge IT solutions and logistics know-how to provide services that meet a variety of logistics needs from Japanese customers, the statement said. – TradeArabia News Service

Tags: DHL | Japan | Tokyo |

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