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E-commerce growth reveals Japan’s modern warehousing shortage

E-commerce growth reveals Japan’s modern warehousing shortage

As the growth of Japan’s e-commerce sector gathers pace the lack of modern warehousing in the country is fast becoming increasingly apparent. This gap is something that developers and logistics services providers are investing heavily to fill.

DHL Express recently inaugurated a new $74 million 215,278 square foot warehouse at Shin-Kiba, Tokyo which has doubled its space in the city – this comes at a time when the company’s operations in the city are on the rise.

"The new DHL Express Tokyo Gateway marks the largest investment to date by the company in Japan and enhances our extensive operational network in the country,” said Ken Allen, CEO of DHL Express.

“We believe the Japan market has room to grow further, especially in the e-commerce and automotive sectors, and we see increasing demand for international shipping needs from China and Southeast Asia into Japan.”

Ming Mei, chief executive officer of GLP, highlighted that the demand for modern logistics facilities in Japan was strong – and that as little as 3 percent of the current space is up to modern standards. Rapid development is required to serve the outsourcing business that has grown by 125 percent since 2006 and to accommodate the delivery pressures of e-commerce sales that have risen by 270 percent in Japan since 2006.

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