Kintetsu takes on the world

Sharon Cunningham

Kintetsu World Express is making its mark on the global freight-forwarding industry. With offices across Asia, North America and Europe, the company has also made recent additions to its network by opening operations in India, South America and South Africa, and is looking to expand in the Middle East and African markets.

By far the strongest market at the moment is Hong Kong, which has the distinction of being Kintetsu's first overseas operation outside Japan.

"In terms of tonnage, Kintetsu is the biggest company moving freight between Japan and Hong Kong," deputy general manager for Asia-Oceania, Keiji Shimizu, said.

The company last year opened its first subsidiary in India.

"The volume of freight going into India is on the rise, so we saw that it was necessary to have people there looking after Customs and so on. India has a lot of potential, so establishing a presence there now puts us in a good position for the future," Shimizu said.

As an indicator of the growing importance of southeast Asia to Kintetsu's business, the company last month relocated its regional headquarters from Japan to Singapore.

Kintetsu also has a joint venture company there with Singapore Technologies Logistics. Dubbed STKWE, its focus is in providing logistics for clients in developing countries like Laos and India.

"Singapore Technologies is a government-owned enterprise that has a lot of experience developing industrial parks. We benefit from that, while they benefit from Kintetsu's extensive Asia network."

Kintetsu is also keen on developing its China business. At present operations are divided into north and south sub-regions, managed by Kintetsu Beijing and Kintetsu Hong Kong respectively, and cover Dalian, Qingdao, Beijing, Shanghai, Zhuhai and Xiamen. The company also has a warehouse in Futian, Shenzhen.

"We're looking to set up more offices in China, but after the currency turmoil, we want to approach it slowly," Shimizu said.