The Joint Venture will cover international supply chain management, freight forwarding, warehousing & distribution services, land transport, other related logistics services and development of Gulf-Japan trade lane
DUBAI: UAE based global conglomerate Transworld Group and Yokohama, Japan based Suzue Corporation have signed a strategic agreement for the formation of a Joint Venture Company to explore the growing logistics business opportunities within the Gulf region, Indian Sub-continent and Japan.
The Joint Venture agreement was signed in Dubai by Mr. Ramesh S. Ramakrishnan, Chairman of Transworld Group and Mr. Takahiro Suzue, President and Representative Director of Suzue Corporation, Japan.
Under the agreement, Transworld Group and Suzue Corporation will incorporate a Joint Venture Company at Jebel Ali Free Zone in Dubai to focus on the Gulf region, Indian sub-continent and Japan. The company will provide comprehensive services to their global customers in supply chain management, international freight forwarding, customs clearance, warehousing and distribution, land transport and other related logistics services. It will also have a focus on land bank development for commercial purposes in Middle East, Indian Sub-continent and Japan.
Mr. Ramesh S. Ramakrishnan, Chairman of Transworld Group said “Our joint venture agreement with Suzue Corporation assumes strategic importance due to the enhanced trade ties between UAE, India and Japan. The UAE, for instance, has established a joint working committee to coordinate policies in a wide range of areas from defense, nuclear energy, oil, security, health and trade with Japan. This joint venture between Transworld and Suzue Corporation will provide comprehensive logistics services to enhance the trade involving UAE, Japan and India.”
The geographical region covered by the agreement will initially include Gulf Co-operation Council countries, Indian Sub-continent and Japan, with the possibility of extending it to other South East Asian nations.
Mr. Takahiro Suzue, President and Representative Director of Suzue Corporation, Japan emphasizes: “Our Joint Venture alliance with Transworld Group will bolster our presence in the dynamic and growing markets of Indian Sub-continent and Gulf region and we will synergise our experience and expertise to extend the services in this region and beyond.”
He continues: “Suzue Corporation, established in 1908, is a key player in the Japanese shipping and logistics business. With the possibility of the trade growing manifold between Japan, UAE and India; Suzue Corporation together with Transworld Group will play a key role in that trade development, specifically in the shipping and logistics space.”
Under the Joint Venture agreement, Suzue Corporation will handle the business development and
logistics services in Japan; and Transworld Group’s logistics arm, Transworld Logistics FZE, will handle operations in the United Arab Emirates and the Gulf region. The businesses in the Indian Sub-continent will be managed by Transworld Group’s Shreyas Shipping and Logistics Limited.
In 2016, bilateral trade between UAE and Japan stood at $25 billion (Dhs 91.8 billion), representing 32 per cent of Japan’s trade with Middle Eastern countries. UAE represents nearly a third of Japan's trade with countries in the Middle East.
With Japan’s commitment to invest $ 35 billion to India through public and private funding over the next five years for developmental projects, and the ambitious “Make in India” scheme, there is renewed interest in partnerships between both countries.
The joint venture between Transworld Group and Suzue Corporation is a strategic step to benefit from the growing business ties between UAE, Japan and India.