One of the world’s largest global logistics networks, Japan’s Nippon Express, which has its headquarters in Japan, has officially opened up a subsidiary office in Nairobi. This is the first office that the company has opened in the African continent.
The office in Nairobi is expected to provide one-stop service from procurement logistics, optimizing logistics required in product manufacturing processes, to distribution logistics. It is also expected to provide solutions that link people and organizations beyond national and regional boundaries.
Nippon has been involved in the export of flowers grown in Kenya. Before opening up the office in the country, the company had been reported to have undertaken Africa-related transportation services (local agents) through its German subsidiary, which supervises its European operations, in order to export the roses and other cut flowers it got from the country.
According to the firm, the Port of Mombasa, East Africa’s biggest trading port and the region’s logistics hub, has experienced its cargo handling volume rise rapidly in recent years. This in addition to the opening of the standard gauge railway that connects Nairobi to Mombasa which recently made transport by freight transport available, it is expected to see a rise in logistics demand. This is as a result of reduction in time and cost of transport inland from the port.
The organization also plans on implementing structures that will enable it to meet customer demands not only within the country but in the rest of the east African region as well. In addition, the company plans to expand even further looking at growing its operations in the rest of the African continent.
This goes hand in hand with what the Japanese government had planned to do as discussed during the 6th Tokyo International Conference on African Development that was held in Nairobi in 2016. The government had a plan to help by investing in order to encourage Japanese companies to set up operations in Africa.