Global Logistics Partner

Southeast Asia & Middle East
We intend to further expand our logistics business, focus on increasing
shipments from India and Vietnam, and increase revenues.
Performance and Highlights
Net sales were 26.1 billion yen (up 13.7%), and operating
income was 1.2 billion yen (up 25.2%).
Airfreight forwarding
Despite increased export volume of hard discs and packaged
software, there was a sharp decline in export shipments from
existing customers, and a decrease in handling of
automobile-related exports, causing airfreight exports to
decline by 4.0% *1 . Imports increased by 4.3% *2 , helped by
increased volume of semiconductor manufacturing
equipment and other production equipment imports.
Ocean freight forwarding
Exports increased 12.7% *3 while imports grew by 20.0% *3 .
Other major achievements
In order to enhance our sales bases, our Indian subsidiary
opened a new office in Ahmedabad in August 2006, our
Vietnamese subsidiary opened a satellite office in Hai
Phong in October 2006, and in November our Thai
subsidiary began operating a warehouse in Ayutthaya.
Notes: Figures showing increases or decreases are relative to the previous fiscal term; *1
indicates comparison based on weight, *2 indicates comparison based on number of
shipments, and *3 indicates comparison based on TEUs (Twenty-foot Equivalent Units).
Net Sales (left) Operating Income (right)
(Billions of yen) (Billions of yen)
80
70
60
50
40
30
20
10
0
Asia & Oceania Headquarters
‘03/3 ‘04/3 ‘05/3 ‘06/3 ‘07/3
Note: Following the split of Asia & Oceania Headquarters into two units, “East Asia & Oceania”
and “Southeast Asia & Middle East” in January 2006, the sales from the Middle East region,
which were a part of Europe & Africa, are now included in Southeast Asia & Middle East. The
figures of the fiscal year ended March 2006 are adjusted retroactively.
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0
Business Outline and Strengths
Report by Five Regions
KWE's Southeast Asia & Middle East headquarters covers 10
Group affiliates, starting with the Singapore subsidiary that we
established in 1975 and including affiliates in places like Malaysia,
India and Vietnam. As in the East Asia & Oceania region, KWE got
an early start on establishing its service network in Southeast Asia
and the Middle East.
In India, where transport and logistics demand is expected to
continue to grow in the future, KWE entered the market relatively
early by establishing a subsidiary in 1997, and already provides
services from nine locations today. In Vietnam, another Asian
country where there is promise for rapid growth in demand, we
established a subsidiary in March 2005. Since then, we have been
steadily building a framework for expanding future sales of
logistics services, including the establishment of a subsidiary
specializing in logistics, Kintetsu Logistics (Vietnam), Inc., in
February 2007.
Major Policies
By strengthening our logistics services sales framework, we
aim to expand sales of 3PL services and maintain/achieve a
good balance between airfreight, ocean freight, and logistics.
We already began reinforcing our logistics facilities in the
year ended March 2007, and early in the year through March
2008, too, we augmented our warehouse facilities in Johor
Bahru, Malaysia, and Penang, Singapore. Our customers'
cargo is a portion of their assets; by also storing it rather than
only transporting it, we want to establish a position for
ourselves as an even more important and trusted logistics
partner. It is partly toward this end that we are also focusing
on developing personnel who are skilled at logistics sales.
In order to expand the range of items that we handle, we will
increase forwarding of clothing cargo originating from India
and Vietnam. By increasing handling of this type of freight
bound for North America in particular, we aim to achieve our
Group-wide goal of increasing the volume of North Americabound
freight that we handle.
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