Japan's logistics services provider, Yamato Holdings, which is facing a labour shortage in its domestic market, has decided to expand its delivery business in Southeast Asia by launching a forwarding service for importers and exporters in Indonesia and Myanmar, where demand for logistics services is growing.
New Indonesia and Myanmar services
News agency Nikkei said in a report that In Indonesia, Yamato will begin operating a forwarding service this month for international traders and people who are moving. Yamato Indonesia Forwarding, a joint venture with local distributor Multisarana Bahteramandiri, will take orders from shippers and book space on planes, ships or trucks.
In Myanmar, the company plans to begin sales in April. In addition to a forwarding service for international traders, the company will offer deliveries using trucks. Myanmar has been building industrial parks, and Japanese companies are increasingly active in the country.
Joint venture and closer cooperation high on the list
Yamato hopes to win orders for freight service between Myanmar and neighbouring countries such as Thailand, the report said, adding that the company has set up Yamato Global Logistics Myanmar, a joint venture with local distributor Aye International Group. Eventually, it wants to operate warehouses in Myanmar.
Earlier Yamato moves into Southeast Asia included an investment in Malaysian parcel delivery company GD Express Carrier in 2016, while last year it established a joint venture with Thailand's Siam Cement Group to create a parcel delivery service.
The Nikkei report noted that in the overseas distribution business, Japanese rivals Nippon Express and Hitachi Transport System are ahead of Yamato, and competition is fierce.
However, Yamato hopes to catch up by forming partnerships with local companies, expanding its regional network and combining parcel delivery with international logistics services.
Nol van Fenema