Mar. 23, 2015
A Logistics Company To be Established in Thilawa Special Economic Zone in Myanmar
Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President and CEO: Kuniharu Nakamura) and Kamigumi Co., Ltd. (Head Office: Chuo-ku, Kobe, Hyogo; President: Yoshihiro Fukai; hereinafter “Kamigumi”) will jointly establish a comprehensive logistics company, Thilawa Global Logistics Co., Ltd. (“TGL”), in the first-phase development area of the Thilawa Special Economic Zone in Myanmar (“Thilawa SEZ Zone A”).
In view of a large workforce and a consumer market with a population exceeding 50 million, Myanmar has become a market that foreign-capital companies are willing to enter and a popular destination for direct investment. Since the transition to civilian rule, many companies around the world, including more than 200 Japanese companies, have been operating in the country. Previously, investment was made mainly in the light industry (mainly a sewing sector). In recent years, however, investment has been directed toward other industries as well. In the near future, progress in infrastructure development will allow foreign-capital companies to advance into a wider range of industries.
Direct investment in Myanmar’s logistics service industry has increased in recent years, driven by an increase in foreign trade and steady expansion of the domestic consumer market. It is also expected that demand in the logistics service industry will increase in line with the establishment of a brisk consumer market led by growth of the middle-income population.
Located approximately 20 km from Yangon city, Thilawa SEZ Zone A is advantageously positioned not only as a base for export and processing, but also as a production base to meet the domestic demand of the Myanmar market, and additionally offers availability of various incentives. Many companies have already announced their intention to set up in Thilawa SEZ Zone A. However, no companies currently provide logistics services; therefore, TGL will be the first company to secure a license to locate and operate a logistics business there. TGL will construct a logistics center on a 4.75-ha area of land. Through TGL, Sumitomo Corporation and Kamigumi will offer logistics business expertise accumulated through their respective businesses in the ASEAN region to support companies that operate in Thilawa SEZ.
Kamigumi is expanding its truck and forwarding business in Myanmar’s domestic market through a representative office in Yangon and a local subsidiary. The company aims to create synergy from the TGL business and strengthen its logistics network between bases within the fast-growing ASEAN market.
Sumitomo Corporation established a logistics company in Thailand in 1989, and has also established logistics bases in Indonesia and Vietnam and provided comprehensive logistics services mainly to electronics, electric and auto-related industries. The company aims to expand its logistics service business in Asia, particularly in ASEAN countries.
|Reference [Outline of the new company]|
|Name of company||:||Thilawa Global Logistics Co., Ltd.|
|Location of the head office||:||Zone A, Thilawa Special Economic Zone, Republic of the Union of Myanmar|
|Land area||:||4.75 hectares (containing a 5,000 m2 first-phase warehouse)|
|Capital||:||1 billion yen|
|Amount of investment||:||1.4 billion yen|
|Investment ratio||:||72% by Sumitomo Corporation, 28% by Kamigumi|
|Business||:||Comprehensive logistics service|
Corporate Communications Department,