Nov 1, 2013

Japan Post opens first overseas subsidiary in Shanghai

Breaking of the Sake-cask (Kagamibiraki) to celebrate the establishment of the new company

[Shanghai Bureau]
Japan Post Co., Ltd. on October 30 held the opening ceremony of JAPAN POST International Logistics Co., Ltd., its wholly-owned local subsidiary in Shanghai, China. As Japan Post's first overseas local subsidiary, Japan Post International will offer a wide range of services, including international forwarding between Japan and China, customs clearance and domestic storage/distribution, as well as import and export/clearance/insurance representation, test marketing and product PR planning. The new company will operate in partnership with the local comprehensive logistics provider Shanghai Asian Development International Transportation Pu Dong Co., (ADP). At the opening ceremony, Toru Takahashi, president of Japan Post, said that, "We want to help in the export of Japanese goods to China and in the procurement/distribution of products from China for Japanese enterprises. Now we hope to boost our workforce and expand the list our offices to outside of Shanghai henceforth corresponding to the demand."

The ceremony was attended by officials of Japan Post and guests related to the local logistics industry. The guests, which included Masahiro Ohara, Japanese consul-general in Shanghai, and entities related to the local government of Pudong, Shanghai, all celebrated the new beginning of the new company.

In his speech to greet the guests at the event, Takahashi said that, "This company is our first overseas local subsidiary, including during the era of our predecessor Japan Post. It is a new player in the field of international logistics. While we are happy that we are now able to work in Shanghai, we also vow to strive and do our best day-by-day in order to cope with each need of our customer." Meanwhile, Shuji Obe, managing executive director of Japan Post who has been appointed as the chairman of the new Chinese subsidiary, said that, "The development of international mail-order, e-commerce and consumer products such as fresh produce and other food products has been quite remarkable in China already, and it still has enormous potential for further growth in the future. We will strive to offer services that are similar to those we offer in Japan."

The Japan Post International Logistics obtained its operating permit from the Shanghai Administration for Industry & Commerce effective September 6 and kicked off its operation in October. Capitalized at 50 million yuan (about Y800 million), the company has a five-man workforce under its general manager, Haruko Takachi. Now with the establishment of this new local subsidiary, the Beijing representative office, which was opened as its first overseas base in April 2006 during its former Japan Post era, has been closed.

The company decided to open the Shanghai subsidiary in light of the growing volume of transactions for the international transport of cargoes, centering on those bound to China, that are derived from domestic logistics deals, as well as the increased inquiries for export from the local government units and regional corporations. The Chinese subsidiary is pillared in five business lines, comprising (1) seamless logistics from Japan up to the delivery destinations in China, (2) domestic logistics in China, (3) import/export, clearance and insurance representation, buy out of inventory stocks and other trade support, (4) test marketing and media promotion, and (5) call center, order receipt management and other customer support services.

ADP, its local partner, was established in 1994 and is engaged in import/export forwarding by sea/air, customs clearance, inventory management and domestic distribution, as well as in a wide range of logistics services for automobiles, electronic equipment, bonded cargoes, project cargoes and hazardous materials. It has 50 bases in China, with a workforce of 2,000 people. Its sales in 2012 stood at 3.8 billion yuan (about Y60 billion). The company has also obtained the AA ranking in the company index formulated by the Shanghai Customs. Now with the cooperation of ADP in such matters as registration related to making a foray into the Chinese market, Japan Post is planning to expand its interests in the logistics segment while enjoying the support of ADP.

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