May 20, 2016

JR Freight to open multi-tenant DC in October 2021

Tokyo Rail Gate EAST

Japan Freight Railway Company (JR Freight) has announced that the company's first multi-tenant large-sized distribution center (DC) will be named Tokyo Rail Gate WEST (the current F Plaza Tokyo M bldg.) and Tokyo Rail Gate EAST (the current F Plaza Tokyo N bldg.). This project of the large-scale distribution center comprising the two buildings is to be completed in October 2021. As the center, neighboring Japanese representative sea and air gateways of Tokyo Port's international container terminal and Haneda Airport (Tokyo International Airport), is advantageously located in the premises of the company's Tokyo Freight Terminal Station (Yashio, Shinagawa-ku), the names were selected through in-house soliciting for ideas as ones which can call attention to the center's good location. At a press conference held on May 18, Shuji Tamura, president of JR Freight, said, "We will go all out to proceed with this project, and beef up our future vision of aiming to become a comprehensive logistics company centering on railway transport".

Regarding the Tokyo Rail Gate project, the company intends to establish a large-sized distribution center connected directly to a freight railway station in view of contributing to the promotion of use of railway freight transport, in order to grow as a comprehensive logistics company from here on. It will seek to enable the center to function as a new hub in pursuit of synergy effect with its railway business, as well as developing it as multi-tenant facility to collect a wide range of tenant companies.

The company plans to begin construction of the five-story building with seismic-force resisting structure of Tokyo Rail Gate West with a total floor area of 61,000 sqm in January 2018 and complete it in August 2019, and start construction of the five-story earthquake-proof building of Tokyo Rail Gate East with a total floor area of 161,000 sqm in October 2019 and finish it in October 2021. A combined total floor space of "WEST" and "EAST" will be more than 220,000 sqm, resulting in one of the largest distribution facilities in Japan.

The Tokyo Rail Gate, located in a strategic traffic point, is 2 km away from Tokyo Port's international container terminal, 4 km away from Haneda Airport's international air cargo terminal, and 2 km away each from Oi-minami IC of Bayshore Route of Shuto Expressway and Heiwajima IC of Yokohane Route of Shuto Expressway.

As for Tokyo Rail Gate EAST, the company will commission the development planning, collecting of tenants and other activities to Mitsui Fudosan. After completion of the construction, Mitsui will conduct its master lease, management and operation.

As Mitsui operates its in-house-brand distribution centers nationwide, it will deepen their networks and activate its sales activity towards a wide range of target customers, taking the opportunity of the JR Freight's project. Tamura of JR Freight also explained at the conference that, "We are actually going ahead with a collaborative sales activity with Mitsui Fudosan".

JR Freight expects the new DC's advantageous location near Haneda Airport to be a selling point, as there are companies handling air cargo at the current DC (F Plaza) in the premises of Tokyo Freight Terminal Station.

Tamura said, "I think we can anticipate business expansion, with all things considered. For example, there is an airport near our facility. So we need to consciously work on Haneda Airport".

Prompted by the "Rail Gate" brand, the company will mull operating such a multi-tenant-type DC nationwide in the future.

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