The Reasons that Steered the Purchase of Land for Yard Use

Hello, I’m Ichiki of Sync Logistics.

Recently, our company acquired 23,000 tsubo (75,900 square meters) of land in Shinmoji, Kitakyushu. In this issue, I’d like to share the background and purpose of the purchase.

■Why did we acquire the land?

Currently, we are steering our company policy into purchasing land for yard use. Beginning with Shinmoji, we are moving towards acquiring land in all regions including the Keihin region (Tokyo to Yokohama), Kansai, and Chubu.

In the used car export business where the market is volatile and highly uncertain, land for yard use is generally leased from entities such as port authorities. Adhering to convention, our company has also leased land and then created our services. However, leased land must be relinquished once the lease is over, and depending on the return date, there are times when it is difficult to respond to market volatility.

If logistics providers can secure sizable land, they will be able to flexibly respond to changes in logistics volume. Shippers will also be able to procure and export many cars in a stable way at any given time, and it will also be easier for partner companies to make plans for their business prospects. In this regard, I came to the decision that purchasing land would be the best countermeasure in order to maximize the profits of all stakeholders including shippers.

■Wanting to draw out the potential of local businesses

Known as the doorstep of Kitakyushu, Shinmoji is an area built on land reclaimed by Kitakyushu City for industrial development. I have wanted to contribute to the local area’s revitalization, and I am happy to take part as a private sector operator. With our acquisition of sizable land with easy access to Shinmoji Port and Kyushu Expressway, we would like to take the opportunity to deepen our partnerships with local companies and further promote business.

There are many local companies in Kitakyushu that are over 100 years old, having developed their businesses while being entrenched in the area. While it may be presumptuous of me, I believe there is still room for growth for local companies that have cultivated trust and expertise over the years and have long supported Japan’s international logistics. We hope that through our company’s initiatives, local businesses will fully demonstrate their overflowing potential. This is one of the reasons why we acquired the land.

■Fanned by a weak yen

Our company has just celebrated its 10th anniversary, and I’m glad that the number of people whom I regard as friends in and out of the company has been increasing. Their presence in my life has been very reassuring, and with their continued support and encouragement, I’ve been able to visualize what the next 10 years might be like, something I didn’t even dream about when our company was first established. With this land acquisition, I’ve also been able to think positively – if the market shrinks, we’ll just develop new ones, or we’ll just change our business model.

For those of us in the export industry, a prolonged weak yen has fanned our business and has reminded us that now is the time to work harder. I’d like to continue taking on the challenge of fully utilizing the land we have acquired with our partners while exporting as many cars from Japan as possible.

Thank you for your time.