Japanese freight firm's entry threatens to edge out locals
Saturday, 25 August 2012
Jasim Uddin Haroon
Yusen Logistics, a Tokyo-based international freight forwarder, will begin its operation in Bangladesh from October 15 next in a bid to grab a large chunk of market shares in the country's external trade, sources familiar with the issue told the FE.
Yusen Logistics Co. has already established Yusen Logistics (Bangladesh) Ltd., to expand its business in the country.
The Tokyo-based company is the logistics arm of Nippon Yusen Kabushiki Kaisha (NYK Line), Japan's largest shipping firm by sales.
A senior official at the NYK Dhaka told the FE: "We're progressing in accordance with our deadline of inaugurating our offices in October 15 next."
He also said: "The new logistics company will not only serve the NYK, but it will also serve other shippers."
The company will establish two offices -- one in Dhaka and the other in Chittagong.
In these two key areas, the company will take advantage of its position as a total logistics company to provide one-stop services by combining air and sea freight forwarding, focusing on buyers' consolidation services for apparel makers, sources said.
Sources familiar with the issue said the Japanese company considers Bangladesh as an economically potential country against the backdrop of huge cheap labour forces.
They said NYK Logistics also considers Bangladesh one of the "Next 11" emerging economies following the so-called BRICs.
In economics, BRIC is a grouping acronym that refers to the countries --- Brazil, Russia, India and China.
Sources at the clothing sector said, many apparel and retail giants have recently advanced from China and other clothing making nations to Bangladesh that have been luring many globally-reputed logistics firms to enter into the country.
Anowar Alam Chowdhury Parvez, managing director of Evince Group, said: "Labour cost advantage is our main tool to survive and it emerged as a driving force for the country's economy."
He said entry of new logistics players will enhance efficiency in shipment adding: "It will edge up competiveness in the export sector."
Currently, Bangladesh has over 500 freight forwarders to handle the country's over US$ 62 billion external trade.
But, nearly 40 foreign-owned and joint ventures companies handle more than 80 per cent business.
The foreign-owned companies have been utilising their global networks.
Badrul Hoque Chowdhury, a local freight forwarder, told the FE: "Foreign companies are utilising their global networks and local companies are losing their shares gradually."
The company's group operating revenue, however, edged up 1.5 per cent in the April-June quarter from the same three-month period of last year to $983.01 million.
Yusen Logistics, a Tokyo-based international freight forwarder, will begin its operation in Bangladesh from October 15 next in a bid to grab a large chunk of market shares in the country's external trade, sources familiar with the issue told the FE.
Yusen Logistics Co. has already established Yusen Logistics (Bangladesh) Ltd., to expand its business in the country.
The Tokyo-based company is the logistics arm of Nippon Yusen Kabushiki Kaisha (NYK Line), Japan's largest shipping firm by sales.
A senior official at the NYK Dhaka told the FE: "We're progressing in accordance with our deadline of inaugurating our offices in October 15 next."
He also said: "The new logistics company will not only serve the NYK, but it will also serve other shippers."
The company will establish two offices -- one in Dhaka and the other in Chittagong.
In these two key areas, the company will take advantage of its position as a total logistics company to provide one-stop services by combining air and sea freight forwarding, focusing on buyers' consolidation services for apparel makers, sources said.
Sources familiar with the issue said the Japanese company considers Bangladesh as an economically potential country against the backdrop of huge cheap labour forces.
They said NYK Logistics also considers Bangladesh one of the "Next 11" emerging economies following the so-called BRICs.
In economics, BRIC is a grouping acronym that refers to the countries --- Brazil, Russia, India and China.
Sources at the clothing sector said, many apparel and retail giants have recently advanced from China and other clothing making nations to Bangladesh that have been luring many globally-reputed logistics firms to enter into the country.
Anowar Alam Chowdhury Parvez, managing director of Evince Group, said: "Labour cost advantage is our main tool to survive and it emerged as a driving force for the country's economy."
He said entry of new logistics players will enhance efficiency in shipment adding: "It will edge up competiveness in the export sector."
Currently, Bangladesh has over 500 freight forwarders to handle the country's over US$ 62 billion external trade.
But, nearly 40 foreign-owned and joint ventures companies handle more than 80 per cent business.
The foreign-owned companies have been utilising their global networks.
Badrul Hoque Chowdhury, a local freight forwarder, told the FE: "Foreign companies are utilising their global networks and local companies are losing their shares gradually."
The company's group operating revenue, however, edged up 1.5 per cent in the April-June quarter from the same three-month period of last year to $983.01 million.