NYK Logistics and Yusen Air & Sea Service extended their global merger into North America on Friday, combining operations as part of the effort to turn the businesses into a single worldwide logistics power.
Officials at Japan’s NYK Group said they expect the combined businesses to expand annual revenue 50 percent within three years, from some $4 billion last year to a total of $6 billion by 2013.
The merger completed this week, the latest in a staged integration around the world, combines NYK Logistics (Americas) and Yusen Air & Sea Service (U.S.A.) into Yusen Logistics (Americas).
The businesses, part of the NYK Group for more than 25 years, are combining to provide end-to-end service coverage including origin cargo management, ocean freight forwarding through its Double Wing Express brand, air freight forwarding, warehousing, reverse logistics, surface transportation and integrated supply chain solutions.
Although both companies are broadly logistics operators, NYK Logistics and Yusen have had different identities in the market. With most of its business focused on air freight forwarding, Yusen Air & Sea operates warehouses that are mostly near airports but has no other transport assets. Operating under the NYK container line umbrella, NYK Logistics runs trucking and warehouse operations to serve mostly ocean forwarding services.
They’ll operate now as a single unit with the NYK Group, which also counts Nippon Cargo Airlines as a subsidiary.
Globally, Tokyo-based Yusen Logistics will employ over 17,000 staff in 412 offices and facilities and manage over 22 million square feet of warehousing space.
In the Americas, Yusen Logistics will have over 60 office locations in North and South America, with some 2,000 employees and 4.7 million square feet of warehousing space.
Yusen Logistics (Americas), headquartered in Secaucus, N.J., will be headed up by Masaki Tanaka, chairman, Kazuo Ishizuka, president and CEO and Michael Noone as executive vice president and chief operating officer.