UAE-based global conglomerate Transworld Group and Japan’s Suzue Corporation have formed a joint venture company to explore the growing logistics business opportunities within the Gulf region, Indian Sub-continent and Japan.

The strategic agreement agreement between the copanies was signed in Dubai, UAE, by Ramesh S Ramakrishnan, chairman of Transworld Group; and Takahiro Suzue, president and representative director of Suzue Corporation, Japan, said a statement.

Under the agreement, Transworld Group and Suzue Corporation will incorporate a joint venture company at Jebel Ali Free Zone in Dubai to focus on the Gulf region, Indian sub-continent, and Japan, it said.

The company will provide comprehensive services to their global customers in supply chain management, international freight forwarding, customs clearance, warehousing and distribution, land transport and other related logistics services. It will also have a focus on land bank development for commercial purposes in Middle East, Indian Sub-continent, and Japan, it added.

Ramesh S Ramakrishnan, chairman of Transworld Group, said: “Our joint venture agreement with Suzue Corporation assumes strategic importance due to the enhanced trade ties between UAE, India and Japan.”

“The UAE, for instance, has established a joint working committee to coordinate policies in a wide range of areas from defence, nuclear energy, oil, security, health and trade with Japan,” he said.

“This joint venture between Transworld and Suzue Corporation will provide comprehensive logistics services to enhance the trade involving UAE, Japan and India,” he added.

The geographical region covered by the agreement will initially include GCC countries, Indian Sub-continent, and Japan, with the possibility of extending it to other South East Asian nations.

Takahiro Suzue, president and representative director of Suzue Corporation, Japan, said: “Our joint venture alliance with Transworld Group will bolster our presence in the dynamic and growing markets of Indian Sub-continent and Gulf region and we will synergize our experience and expertise to extend the services in this region and beyond.”

“Our company is a key player in the Japanese shipping and logistics business. With the possibility of the trade growing manifold between Japan, UAE and India; and together with Transworld Group will play a key role in that trade development, specifically in the shipping and logistics space,” he added.

Under the joint venture agreement, Suzue Corporation will handle the business development and logistics services in Japan; and Transworld Group’s logistics arm, Transworld Logistics FZE, will handle operations in the UAE and the Gulf region, said a statement.

The businesses in the Indian Sub-continent will be managed by Transworld Group’s Shreyas Shipping and Logistics Limited, it stated.

In 2016, bilateral trade between UAE and Japan stood at $25 billion, representing 32 per cent of Japan’s trade with Middle Eastern countries. UAE represents nearly a third of Japan's trade with countries in the Middle East.

With Japan’s commitment to invest $35 billion to India through public and private funding over the next five years for developmental projects, and the ambitious “Make in India” scheme, there is renewed interest in partnerships between both countries.

The joint venture between Transworld Group and Suzue Corporation is a strategic step to benefit from the growing business ties between UAE, Japan and India, it added. – TradeArabia News Service