Dubai headquartered global conglomerate Transworld Group (www.transworld.com) and Yokohama based Suzue Corporation of Japan (www.suzue.co.jp) have signed a Memorandum of Understanding for the formation of a Joint Venture Company for exploring business opportunities in the logistics space within Indian Sub-continent, Middle East and Japan.
The Memorandum of Understanding was signed by Mr. Ramesh S. Ramakrishnan, Chairman and Mr. Ritesh S. Ramakrishnan, Director – Strategy and Business Planning of Transworld Group, and Mr. Takahiro Suzue – President and Representative Director of Suzue Corporation, Japan.
Under the agreement Transworld Group and Suzue Corporation will develop a Joint Venture unit which will capitalise on the possibilities in international freight forwarding, customs clearance service, warehousing services, land transport services and other related logistic services with additional focus on land bank development for commercial purposes in Indian Sub-continent, Middle East and Japan.
The geographies covered by the agreement initially include Gulf Co-operation Council countries, Indian Sub-continent and Japan, with the possibility of extending to South East Asian nations.
“The agreement assumes importance due to the enhanced trade ties between Japan and India strengthened by the visit of Prime Minister Narendra Modi to Japan in September 2015 and the impending visit of Prime Minister Shinzo Abe to India this month,” said Mr. Ritesh S. Ramakrishnan.
The strengthened ties have meant that India-Japan relations have been upgraded to the level of ‘Special Strategic Global Partnership.’
“We will utilize our experience and expertise in the Middle East to extend the services in this region too. With the possibility of the introduction of shinkansen technology in India, enhanced defence ties and negotiations for a civil nuclear cooperation agreement that would pave the way for exporting Japanese reactors to India, the two-way trade is expected to grow manifold and we hope to play a key role in that space,” said Mr. Ritesh S. Ramakrishnan.
“Suzue Corporation, established in 1908, is a key player in the Japanese logistics business and through this Joint Venture in alliance with reputed Transworld Group we hope to bolster our presence in the dynamic markets of Indian Sub-continent and Gulf Co-operation Council,” emphasized Mr. Suzue.
While Transworld Group’s logistics arm in the Middle East, Transworld Logistics FZE, will handle operations in the United Arab Emirates and Middle East, Shreyas Shipping and Logistics Limited, part of Transworld Group, will manage the business in the Indian Sub-continent and Suzue Corporation will oversee the Japan end.
With Japan’s commitment to give $35 billion to India through public and private funding over the next 5 years for developmental projects, and the ambitious “Make in India,” which aims to transform the country into a global manufacturing hub, there is renewed interest in two-way partnerships, and this Joint Venture is yet another step in that direction.