Yusen Logistics of Japan Expands to Bangladesh

Dhaka, Aug 16 (bangladeshinside.com)—The Japanese logistics company Yusen Logistics Co., Ltd. announced today it’s expansion to Bangladesh in a response to increasing logistics demand in one of the fastest growing emerging markets in the South Asian region. A joint-venture company, Yusen Logistics (Bangladesh) Ltd., has been registered in Bangladesh on the 2nd July, which will begin operations on October 15. The newly established company aims to take advantage of its position as a total logistics company to provide one-stop services by combining air and sea freight forwarding, focusing on buyers consolidation services mainly for apparel makers.

The majority share holder with 51% is the Yusen Logistics Co., Ltd. (TYO: 9370) and the minority share holder with 49% is the Nippon Yusen Kabushiki Kaisha (日本郵船株式会社 Nippon Yūsen Kabushiki Kaisha (TYO: 9101), better known as (Japan Mail Shipping Line) or NYK Line. It is a core Mitsubishi company and one of the largest shipping companies in the world. Total paid up capital of the Yusen Logistics (Bangladesh) Ltd. is BDT 10 million.

Bangladesh’s recent economic growth has been recognized by Goldman Sachs as it includes Bangladesh in the “Next 11” emerging countries to watch following BRIC (Brazil, Russia, India and China). JP Morgan lists Bangladesh among it’s “Frontier Five” emerging economies in which it is worth investing.

In the last decades Bangladesh made silent progress in many low-tech, labour-intensive manufacturing sectors, most notably, in the ready-made garments (RMG) sector, which is now a USD 24 billion-export industry of Bangladesh.

While China is starting to lose its attractiveness in this realm, the sourcing caravan is moving on to the next hot spot Bangladesh. With Bangladesh having developed a strong position between European and US buyers many companies are already eager to evaluate the future potential.

Yusen Logistics Co., Ltd. positions Bangladesh as an important strategic market in its mid-term business plan titled “GO FORWARD, Yusen Logistics”. Since 2003, the group companies’ logistic divisions have engaged in buyer’s consolidation service responding to the logistics needs of apparel and retail companies. Since 2011, Japanese personnel have been dispatched on long-term business assignments to Bangladesh, and this local corporation was established with the aim of further expanding business. It promises to promote further improvement of services and overseas networks to meet customers’ diversifying and increasingly sophisticated logistics needs in the future.