Having a comparative advantage can be important for operating from the current environment of global trade uncertainty, according to the chief executive of Japan Post Holdings, one of Japan’s largest conglomerates.
The same philosophy drove the company’s diversification strategy into the logistics business in 2015 — when the idea acquired transport along with also logistics provider Toll Group — along with also can be currently driving its wider expansion.
Speaking at the launch of Toll City, a logistics hub owned by Toll Group along with also situated in western Singapore, Masatsugu Nagato, president along with also CEO of Japan Post Holdings, said he saw the facility as a “symbolic gateway” for the company’s Asia expansion.
Spanning the size of 15 football fields, the completely new hub can be required to improve Toll’s network from the region, through its proximity to road links into Malaysia along with also Tuas Port, which will consolidate Singapore’s container operations in one particular terminal by next year.
“We have (a) 147-year old history, yet we’ve been mainly confined in Japan. Japan can be still growing so-so. yet I think the some other parts of the earth, (Southeast Asian) nations, China, (Asia Pacific) countries are growing much faster. We want to join of which growing opportunities over the earth,” Nagato told CNBC.
The launch of Toll City marks the company’s latest move to diversify away through the insurance along with also banking businesses-which have been hurt by the low along with also negative interest rates in Japan. Instead, Japan Post can be looking internationally for growth, at least from the logistics business.
While his business on the whole has yet to be hit by the ongoing trade war between the U.S. along with also China, Nagato said of which the earth’s two largest economies might eventually have to find a “harmony” in bilateral trade relations.
“I don’t think, you know, China along with also the United States can get something bigger after This kind of so-called trade war. They have to find out how to get the harmony regarding trade bonds between the United States along with also China,” the CEO said.