DHL to build $ 50 m logistics centre in Japan

Logistics giant DHL has announced that its supply chain division in Japan will start construction work for its new Sagamihara Logistics Center, with around 5 billion yen (US$ 50 million) to be invested in the development over the next 10 years.

Strategically located in Sagamihara City, Kanagawa Prefecture, the facility is a stepping stone to further business expansion, a statement from the company said.

With the addition of the facility, DHL Supply Chain will expand its total warehousing space in Japan by approximately 20%. Construction starts in April 2013, with a target completion date of March 2014.

The Sagamihara Logistics Centre is a multi-user hub facility with the warehousing area of approximately 44,000 sqm (13,000 tsubo). Supply chains in the consumer retail industry, including fashion and apparel, are becoming more efficient and globalised amidst growing needs for e-commerce, causing businesses to seek advanced expertise, quality, speed and efficiency in logistics services.

DHL Supply Chain will use this facility, and apply its global best practices, in-depth know-how for the Japanese market and industry expertise to deliver optimum logistics services, primarily for the consumer retail industry, for further business expansion, the statement said.

The site is close to National Route No. 16 and the Sagamihara interchange of the Keno Expressway, offering superior access to Japan’s largest commercial zone, the Tokyo metropolitan area, as well as to airports and port facilities.

With close proximity to the Ebina interchange of the Tomei Expressway, the facility is also well-located for convenient distribution to western Japan. It is strategically located to maximise convenience for many customers in the consumer retail sector, including fashion and apparel, as well as the manufacturing sector, which requires efficient access to the metropolitan area and markets in central and western Japan.

Jointly developed by Kenedix Inc and Itochu Corporation, the facility adopts the build-to-suit (BTS) approach to allow DHL supply chain to provide optimum solutions. DHL supply chain is to lease the entire property for 10 years, starting April 2014.

DHL Supply Chain North Asia CEO Victor Mok said: “With Asia’s influence becoming more and more evident in the world economy, the consumer retail industry is placing a growing emphasis on conquering the Asian market. This investment reflects DHL’s market superiority and confidence in its future growth potential. DHL will continue to provide services of the world’s highest level in various markets.”

“The consumer retail industry involves fast-paced changes in market demand, and therefore has no time to waste in product introduction,” said DHL Supply Chain Japan President Shuichi Kawamura. “For this reason, it is one of the industries that benefit from the strengths of the DHL Supply Chain, which boasts a global network of the world’s largest scale and process under advanced quality control and as a leading company in 3PL, we will continue to deliver supply chain solutions that go one step ahead of customer needs, so as to assist our customers’ business and achieve further growth together,” Kawamura added.

With far-reaching knowledge and experiences in a range of industries, DHL Supply Chain will continue to use cutting-edge IT solutions and logistics know-how to provide services that meet a variety of logistics needs from Japanese customers, the statement said.