Annual Report 2012

2Commencement of Road TransportServices Connecting Thailand,Cambodia, and VietnamTo meet rapidly growing logistics needs inthe southern half of the IndochinesePeninsula, Nippon Express commencedsales related to the “Southern MekongLand Bridge Express,” a door-to-doorroad transport service connectingThailand, Cambodia and Vietnam. Byrealizing smooth logistics services throughthe acquisition of transit licenses thatpermit bonded transport, we haveshortened lead times by two to sevendays compared with marine transport. Incombination with the already expandedSS7000, a 7,000 km road transport routethat connects Shanghai and Singapore,Nippon Express is working to furtherenhance its regional logistic networks.3Opened Song Than Logistics Centerin VietnamNippon Express opened the Song ThanLogistics Center, a multifunctionalwarehouse facility located in Binh DuongProvince, Vietnam. Very convenientlylocated approximately 20 km from majorairport and seaport facilities, the SongThan Logistics Center can provideservices to Japanese-owned companiesconcentrated in industrial zones aroundnearby Ho Chi Minh City. The Song ThanLogistics Center offers both bonded andgeneral warehousing operations andincludes specialized warehouses fullyequipped with security systems to storehazardous goods. The Center undertakesdistribution center (DC) and vendormanagement inventory (VMI) services forimported components and exportedgoods while actively providing transportand distribution services for expandingmarkets in Vietnam. In addition, the Centeris capable of handling a variety of smalllot,high-mix shipments as well as meetingcustomer distribution processing needs.4Establishment of an Sales Office inRussia’s Major Automotive IndustryCenterNippon Express (Russia) LLC became thefirst Japanese logistics company to opena new sales office in Togliatti in theRussian Federation’s Samara Region, akey center for that country’s automotiveindustry. Russia has seen a growingnumber of automobiles sold domesticallyin recent years and is expected to becomeEurope’s largest automobile market.The Togliatti Sales Office offerstransport services that utilize a widevariety of modes (marine, air, railway andtruck transport) while providing support fornavigating Russia’s complex customsclearance procedures in order to ensureseamless logistics. In addition, the TogliattiOffice is working to enhance its logisticsservices within Russia.5Augmentation of TransportOperations in the United StatesNippon Express U.S.A., Inc. acquired theAmerican firm, Associated GlobalSystems, Inc. (AGS), a mid-sized logisticscompany engaged in domestic/international transport and warehousing inthe United States. In addition, AGS has agained solid reputation for providingmeticulous service in its mainstaydomestic transport business. AGS alsoboasts an impressive degree of know-howin the types of special transport neededfor precision instruments and oversizedcargo, counting a number of Americancompanies among its clients.Through the acquisition of AGS, NipponExpress will expand its logistics operationswithin the United States and reinforce itsbusiness infrastructure mainly through themutual use of its networks. At the sametime, we will work to enhance our locallyrootedlogistics services around the world.NIPPON EXPRESS Annual Report 201217