ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
Business

Southeast Asia warms to Japan Inc.'s refrigerated warehouses

Building spree sparked by growing consumer expectations as incomes rise

Daiwa House will expand a warehouse in a Jakarta suburb and add refrigeration capacity.

OSAKA -- Japanese logistics companies are tapping their abundant know-how to build advanced warehouses in Southeast Asia offering features such as temperature controls to meet the maturing needs of local consumers.

Rising incomes in Asia spur more people to expect quick deliveries of online shopping orders, creating demand for automated handling at warehouses to save time and strict temperature controls to keep food fresh.

Daiwa House Industry plans to expand a roughly 25,000-sq.-meter warehouse in Indonesia eightfold by fiscal 2018, investing 10 billion yen ($88 million). The facility in an industrial park near Jakarta handles home electronics and automotive parts. Refrigeration capacity will be added to take requests from food companies. Local joint venture Daiwa Manunggal Logistik Properti will operate the center.

Daiwa House also looks to build warehouses in the Thai city of Laem Chabang and the Bang Na area of Bangkok in fiscal 2017, together with a local logistics company. The combined floor space will total around 120,000 sq. meters.

Thailand leads its Asian neighbors in employing advanced warehouses. Indonesia, with a population of around 250 million, holds great potential but has lagged in development of logistics due partly to the challenges that the nation's many islands pose to transportation. But now "demand from domestic-market-focused companies is surging," said Tatsuya Urakawa, managing executive officer of Daiwa House.

Kawanishi Warehouse will open its first Southeast Asian facility in a Jakarta suburb in October, investing 2 billion yen. The refrigerated warehouse will hold ice cream ingredients, among other items, with floor space of around 6,000 sq. meters. The company plans another center of the same size.

"Logistics have not kept up with the rising living standards," Managing Director Hiroshi Fukui said.

Mitsubishi Logistics, which operates sites in Thailand and Vietnam, will complete an 18,000-sq.-meter refrigerated warehouse in July near Jakarta. The center will offer cooking facilities to prepare food for shipment to convenience stores and other commercial establishments. Prospective customers include retailers and food companies from Japan.

Mitsui-Soko Holdings has warehouses in Malaysia and elsewhere, and the company has opened a new one in Surabaya, Indonesia's second-largest city. The center handles home items and autoparts.

(Nikkei)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more