NYK Line and its affiliate, Mitsubishi Logistics Corporation, will form a joint holding company to integrate its four terminal operating entities – UNI-X, Nippon Container Terminals, Asahi Unyu Kaisha, and Yusen Koun.
NYK Line, Japan’s second largest shipping group, is building up its logistics businesses and claimed that the integration will improve service quality.
The company is part of the Mitsubishi keiretsu, a Japanese business grouping in which member entities have cross-affiliate holdings.
NYK Line has proposed to take a 51% stake in the holding company, which has not been named.
UNI-X, Asahi Unyu Kaisha, and Yusen Koun operate terminals in Tokyo, Nagoya, and Osaka ports and are all wholly owned subsidiaries of NYK Line.
Nippon Container Terminals operates a concession in Tokyo and is owned by NYK Line (51%) and Mitsubishi Logistics Corporation (49%).
Besides terminal operations, the four entities are also involved in ship agency, warehousing, trucking, and stevedoring.
Although NYK Line’s container operations have been integrated with those of Mitsui OSK Lines and “K” Line into Ocean Network Express, the third-party logistics business remains an important part of its operations.
In March, NYK Line assumed full ownership of its logistics affiliate, Yusen Logistics. The company says boosting its involvement in third-party logistics will minimise its vulnerability to the cycles in the shipping market.