Jan 28, 2015

Mitsubishi Logistics to purchase warehouses in the U.S. West worth a little more than Y3 billion

Delivering import cargo to every corner of the U.S. as a distribution hub center

Mitsubishi Logistics aims to purchase a warehouse facility in Torrance, California, in February 2015. The purchase price will be a little more than Y3 billion. The company will operate the facility under the control of its subsidiary Mitsubishi Logistics America (headquartered in New York). The facility has a lot area of 27,882 sqm and total floor space of 13,197 sqm. As a distribution center for imported cargo, it will handle delivery throughout the U.S. The company plans to expand its transport business in the U.S., with the facility as a base of operations.
Mitsubishi Logistics runs its U.S. business through two corporations, Mitsubishi Logistics America and Mitsubishi Warehouse California. In the event of purchasing this warehouse, the company will clearly separate its operations into two to strengthen its management system and expand operations. Mitsubishi Logistics America will handle international cargo and Mitsubishi Warehouse California will handle storage and delivery within the U.S. After the purchase, the Los Angeles branch office of Mitsubishi Logistics America will be moved to the warehouse facility.

Regarding warehouse operations, Mitsubishi Warehouse California is currently handling U.S. and regional cargo as the corporate base, but this will be the first time Mitsubishi Logistics has established full-fledged warehouses for handling international cargo in the U.S. It will also be the first time Mitsubishi Logistics America to have its own facilities. Mitsubishi Logistics America rents space and offers buyer consolidation services, but with the operation of the new base, it will strengthen its function for imports.

Mitsubishi Logistics is expanding its delivery business overseas, including in China and Southeast Asia, using import distribution warehouses, and deploying that expertise in the U.S. Mitsubishi Logistics already has been renting since November one of the warehouses it will purchase and has begun operations there. The warehouse is already handling cargo such as a Japanese company's household electric cooking appliances and a non-Japanese company's glass fiber, and the purchase will be an opportunity to aim for service expansion. It will also offer highly value added services such as a cross-dock function for imports.
"Though the U.S. economy is slack, I expect the market to continue to grow. Using our network in Japan, China and Southeast Asia, we are to expand our handling of cargo for the U.S.", said Tomohiko Takami, Senior Executive Manager for International Transport.

Construction of the warehouses to be purchased was completed at the end of 2013. The warehouse section is single-storied building, with a ceiling height of 9.75 meters and 34 truck docks. It is located in Torrance, which is home to many Japanese companies and has good access to freeways. Situated almost midway between Los Angeles International Airport, a gateway for international cargo, and the Port of Long Beach, the facility is less than a 30-minute drive from each locations. In addition to delivery throughout the U.S., the facility will be used as a base for cross-border transport with Mexico in the future.

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