Hankyu Hanshin Express to launch transport unit in Bangkok
TOKYO, NNA - Japanese logistics firm Hankyu Hanshin Express Ltd. will launch an independent domestic delivery service in Thailand on Saturday, aiming to reduce outsourcing costs as local demand grows.
HOT Logistics Co., a joint venture with local partners, will handle mainly the transport of international cargo from Japanese clients in and around Bangkok.
The decision comes with local demand growing due to the relocation of production to the South East Asian country from China, which is involved in a protracted trade dispute with the United States, Hankyu Hanshin Express spokesman Masazumi Saiki said.
Hankyu Hanshin Express (Thailand) Co., a local unit of the Osaka-based firm, has so far used Thai firms for domestic shipping, but it intends to address “rising outsourcing costs” so it can provide “quality service” through the new venture, Saiki said.
HOT Logistics aims to lower the percentage of cargo handling that is outsourced from the current 60 percent to 30 percent, the spokesman added, but declined to comment on targeted sales figures.
The new local arm was established last October with Keree Chaichanavong, head of Trans Air Cargo Co., a local shareholder in Hankyu Hanshin Express (Thailand), and Voratat Tantimongkolsuk, head of Logistics One Co., a local land transport service firm, according to a statement.
The venture is capitalized at 5 million baht ($157,000), with Hankyu Hanshin holding a 40 percent stake and the two other investors owning 30 percent each. (NNA/Kyodo)