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Global logistics giant Kintetsu World Express, Inc (KWE) started its direct operation in Bangladesh considering the country's huge potential of becoming a major hub for logistics and supply chain business.
KWE’s move to expand its footprint is seen by the stakeholders as a significant move to boost the country’s logistics sector.
Talking to the FE, the senior management of the 7.0 billion-dollar company said that as Bangladesh is becoming an important part of the global supply chain, KWE decided to start its direct presence this month.
KWE, a leading Japanese freight forwarding and supply chain company, is a subsidiary of the Japanese railway holding company Kintetsu Group Holdings and provides air and sea freight forwarding, customs brokerage, and warehouse inventory management services.
Narrating the rationale behind its decision, Mr Tani said, "We understand Bangladesh is becoming one of the top emerging markets, and as an important player in the global freight forwarding and supply chain business, we think that we have to include this country in our business network."
The company eyes earning revenue of 1.0 trillion yen in five years, and the expansion is part of the efforts to meet the target.
"The company’s growth strategy is to expand organically and geographically to support its global and regional customers. With this aim, KWE have registered our legal entity Kintetsu World Express (Bangladesh) Ltd in January," Yasuyuki Tani, managing director of South East Asia and Oceania Region of the company, told the FE.
Presently the company has established its registered office in Gulshan, Dhaka and an operational office in Chattogram, he informed.
KWE’s business presence in Bangladesh dates back over two decades, but it operated its business through an exclusive agency arrangement.
Highlighting Bangladesh’s importance, Mr Tani said a number of Western and Japanese apparel manufacturers have already established operations in Bangladesh, and further growth in transport demand is expected in the future due to the growth of consumer markets, changes in supply chains, and diversification of industrial structures within Asia.
"As you may well recognise, Japan’s involvement and contribution to Bangladesh dates back to pre-independence. The support continues with its foreign investment, infrastructure development, and transfer of technology in various fields and forms," he added.
"It’s in this journey, we, as KWE, wish to take a bigger part and contribute to the growth and development in ways we do best. Our company is built upon a value system that covers all facets of business ethics, environmental sustainability, equal employment opportunities" Mr Tani said.
He also noted that the company would initially focus on international transportation and gradually work to build its capabilities for the domestic market.
"KWE and its group companies are very strong in retail, automotive, healthcare, and hi-tech verticals and rank among the top 15 companies globally in sea and air mode of transportation. Our endeavour is to actively participate in the industry initiatives in Bangladesh and spread our core values, as we aim to maintain high-quality service and build the customer experience," he added.
According to Mr Tani, his Group is committed to providing flexible services and expanding its network throughout Southeast Asia, including Bangladesh, to meet the needs of the customers.
"We believe that Kintetsu World Express, Inc can play a vital role in Bangladesh's import and export sectors," he added.
Founded in 1970 and headquartered in Minato, Tokyo, Japan, the global logistics giant has a global presence in over 45 countries, 304 cities, and 685 locations, employing over 18000 people.
Vibhu Prakash, Managing Director of Bangladesh Operations, mentioned that their customers are expecting much more services, and the company is also looking at more value addition.
"Bangladesh actually is a very, very critical part in the subcontinent business," he said.
About the future plan of the company, he said that it has a plan to start warehouse operations and be involved in cross-border transportation.