TOKYO: Nippon Express Co, Japan's leading logistics service provider, has obtained a cross-border land transport licence requiring no transshipment in five countries, to help it meet demand in the Mekong region.
The company said Nittsu Logistics (Thailand) Co, its local unit, was now able to carry goods beyond the borders of Cambodia, China, Laos, Thailand and Vietnam without transshipment, paving the way for reduced shipping times.
The Transport Ministry in Thailand recently issued a total of 500 cross-border transport permits, including 25 for passenger vehicles. The Tokyo-based group was given permits for 12 trucks and trailers, the largest number among Japanese affiliates in the country.
The licence is based on the Cross-Border Transport Agreement adopted in 2016 by six nations in the Greater Mekong Subregion. Myanmar, also a member of the pact, is excluded from the licence issued for the Japanese and other firms.
The Thai unit of Nippon Express already provides international land transport services across a few countries, but its existing licence allowed it to pass through only pre-designated states.
The Japanese logistics group is stepping up efforts to expand regional operations, establishing a regional headquarters in Thailand last October to meet diversified customer needs.
The group also set up a base last year in Myawaddy with an eye to serving potential demand for land transport between Myanmar and Thailand. In April, it also established a base in the Vientiane.