Japan’s Mitsubishi Logistics Corp. said that it and Hong Kong-based Jupiter Global Ltd. will set up a 50-50 joint venture in Myanmar, formerly called Burma, to provide logistics services in the highly promising Southeast Asian market.
The Tokyo-based company’s move comes as the United States and the European Union have eased their economic sanctions against Myanmar recently in recognition of significant progress made there toward democratization.
According to Mitsubishi Logistics, its joint venture with Jupiter Global, called Jupiter MLC Logistics (Myanmar) Ltd., will be established in Yangon, formerly called Rangoon, in March and start operations on April 1. Yangon is Myanmar’s biggest city and former capital.
Jupiter Global is an international freight forwarder. Japan Airlines Corp. (JAL) holds a 51% stake in Jupiter Global, and Mitsubishi Logistics owns the remaining 49% stake.
Myanmar is rich in natural resources and has a relatively large population of about 62 million. As the last economic frontier in Southeast Asia, Myanmar has attracted attention from many investors in foreign countries.
“Myanmar’s economy is expected to grow sharply thanks to brisk foreign investment,” Mitsubishi Logistics said in a statement. “We have decided to set up a joint venture with Jupiter Global in Myanmar to meet the anticipated strong growth in demand for logistics services.”