Two japanese giants make alliance

Filed in archive News on May 18, 2006

Two of Japan's largest logistics providers, NYK Group and Yamato Group have announced that they are to form a Strategic Alliance.

According to eLogistics Trend Watch, the two companies explained that the move had been brought about by the globalization of logistics business for both corporate and individual customers, as well as changing competitive landscapes in sea, land and air logistics business. The decision will effectively combine the companies' domestic and overseas management resources with the aim of providing more comprehensive and flexible strategic solutions to customers.

Initially, the business partnership will develop in three key areas:

- Integrated global logistics service for Japanese exports and imports
- Business-to-business logistics services targeting Chinese market
- Management and leasing service of transport equipment using IC tags

The joint venture will target sales of 17 billion yen (€120m) and recurring profit of 1.5 billion (€11m) in 2009.

The two companies will also start joint discussions regarding further collaboration of NYK Group's and Yamato Group's air freight forwarding business, with the aim of expanding its operational and customer base, as well as increasing its competitiveness.

To expand the scope of this strategic alliance, NYK and Yamato have established a Steering Committee which will study ways to maximize the potential of the announced business partnership, as well as consider further expansion of this business partnership in new areas.