Japanese shipping group K Line and compatriot 3PL Kamigumi have formed a joint-venture, KLKG Logistics Holdings, as shipping companies continue to expand into the end-to-end logistics sphere.
The JV will be the new holding company for K Line’s 3PL subsidiary, K Line Logistics, which was owned by K Line (95.96%) and affiliated vehicle and equipment manufacturer Kawasaki Heavy Industries (4.04%).
The tie-up saw K Line transferring its stake to KLKG, which will be 53% owned by the Japanese shipping group, with Kamigumi holding the other 47%.
Kamigumi has 56 warehouses and logistics facilities throughout Japan and operates two container terminals, in Tokyo and Kobe ports.
K Line said: “Through this capital alliance, we aim to achieve further growth in domestic and overseas markets by making full use of both the global network of logistics services built up by K Line Logistics and abundant logistics know-how and sales assets of Kamigumi, strengthening the functions of contract logistics.”
Meanwhile, Japan’s third-largest shipping group’s compatriot peers, and fellow ONE shareholder, MOL and NYK, have also jumped on the 3PL bandwagon.
ONE has expanded into landside services, having founded a joint-venture, Boxlinks, with South Korean 3PL LX Pantos in February, to enter the US intermodal sector.
CMA CGM, which acquired Ceva Logistics in 2019, is also developing its logistics business, acquiring Bolloré Logistics for $5.3bn in 2024, the French group’s largest takeover. Last week, it confirmed a bid for Air Belgium’s cargo operations.
Maersk set about its integrator strategy during the Covid-19 pandemic, when e-commerce sales fuelled demand for delivery services, and yesterday, the Danish group’s terminal arm, APM Terminals, announced it had bought Panama Canal Railway Company to further its integrator ambitions.