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NYK to Enhance Finished-Car Logistics Business in China

June 15, 2011

NYK has established NYK Automotive Logistics (China) Co., Ltd. (NALC; head office: Tianjin, China), a wholly owned subsidiary, to further strengthen the NYK Group’s finished-car logistics business in China, where the automobile market has rapidly grown to become the world’s largest. NALC commenced operations on April 1, 2011. 

The NYK Group began its finished-car logistics business in China in 2003 and has since developed diverse finished-car logistics services ranging from finished-car land-transport services throughout the country and car-carrier terminal operations at the four major ports of Dalian, Tianjin, Shanghai, and Guangzhou to value-added services such as PDIs (Pre-Delivery Inspections)1 at VDCs (Vehicle Distribution Centers).2 By the establishment of NALC, the NYK Group will be able to centralize customer service desks and maximize the utilization of the existing service network for the distribution of finished cars throughout China with the aim of providing effective solutions to meet customer needs.
The NYK Group began the land transport of finished cars in 2005, and grew it as a part of NYK Logistics (China) Co. Ltd. (NLC), a wholly owned subsidiary in China. In 2010, the NYK Group was operating about 700 car trailers to provide land-transport services throughout the country and delivered around 850,000 finished-cars from ports and plants to dealer outlets. As well as taking over the land transport of finished cars from NLC, NALC will respond to the further developing Chinese automobile market comprehensively. Furthermore, the NYK Group will reflect customer needs for logistics in the operations of terminals, land transportation, VDCs, and PDIs to further accelerate an improvement in quality and the enhancement of competitiveness.
The logistics services other than the land transport of finished-cars, such as the automobile-parts logistics business in China that originally was provided by NLC, will continue to be provided by NLC.3 NALC and NLC will cooperate with each other to improve the NYK Group’s automobile-related logistics services in China.
In 2010, sales of new cars in China exceeded 18 million units. Within several years, sales are forecasted to exceed 20 million units. As imports, exports, and the need for inland transportation increase, the need for car logistics is expected to further expand. The NYK Group will continue to make efforts to utilize its accumulated expertise with respect to finished-car transportation and high-quality services to respond to the diverse needs of the company’s customer needs.
NYK Automotive Logistics (China) Co., Ltd.
Major Businesses: Control of finished-car logistics business in China; 
                              inland finished-car transportation business; car carrier agency services
Locations:             Tianjin (head office), Shanghai (branch)
Commencement of operations: April 1, 2011
1 PDI (Pre-Delivery Inspection): services for pre-delivery inspection, repair, and supply of parts for finished cars
2 VDC (Vehicle Distribution Center): a logistics center that receives finished-cars shipped from plants and distributes them to dealer outlets in the country
3 NYK and Yusen Logistics, an NYK Group company, have been in discussions toward the reorganization and integration of the logistics businesses of the two companies, and NLC and Yusen Logistics’ wholly owned subsidiary in China plan to merge in the near future.
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