“K” Line establishes joint venture cold storage business in Vietnam
In conjunction with the rapid modernization of living styles in Vietnam resulting from economic growth, a shift is being made from traditional dietary practices to eating habits that incorporate aspects of foreign cultures, with Japanese supermarkets, convenience stores and restaurants expected to expand further into the country. At the same time, however, there is a shortage of high-performance cold storage that can meet domestic needs, so it is expected that upgrades to the country’s present cold chain will be required, the company said in its press release.
As a part of the strategy to expand its logistics business further in Asia, Kawasaki Kisen Kaisha, Ltd. (“K” Line) has agreed to establish a joint venture with Cool Japan Fund Inc. and Japan Logistic Systems Corp. and to construct and operate a cold storage in the outskirts of Ho Chi Minh City in Vietnam.
This project is determined to be invested by Cool Japan Fund Inc., an organization that seeks to support and promote the development of overseas demand for Japanese products and services that now enjoy increasing international appeal. The development strategies of the three companies for the cold storage in Vietnam are in alignment, and an agreement has been concluded to establish this new joint venture through joint investment.
The new joint venture company will construct and operate a cold storage with total floor area of approximately 9,300 square meters on land with an area of approximately 20,000 square meters. Bangkok Cold Storage, a member company of the “K” Line Group, has been engaged in the cold storage business in Bangkok, Thailand for 26 years since 1989 and has received acclaim from customers for the high quality of its services. Bangkok Cold Storage’s experience and expertise will be transferred to the new joint venture company, with the same high-quality services optimized for storing foods and food ingredients from Japan being provided. The knowledge of Japan Logistic Systems Corp., which has been doing business in Vietnam for more than 20 years, will be utilized to provide incidental services such as delivery arrangements.
Through this new warehouse business, the “K” Line Group will provide services tailored to the needs of customers, focusing on freight shipments from Japanese customers to Vietnam which are expected to increase in the future, and thereby further develop and expand its logistics business in Asia.