Kawasaki Kisen To Supersize Vehicle Carrier In Malaysia

TOKYO (Nikkei)--Kawasaki Kisen Kaisha Ltd. (9107) is trading out the vehicle carrier it operates in Malaysia for a larger ship that can transport 60% more cars.

The firm now runs a 2,500-car carrier to transport finished vehicles between the Malay Peninsula's Port Klang and the island of Borneo for Japanese automakers and Malaysian carmaker Proton Holdings Bhd. But with consumer demand increasing on the peninsula and Borneo, the ship's carrying capacity is growing insufficient.

Kawasaki Kisen will reassign the 4,000-car Jasa Bakti vehicle carrier to the route later this month. The larger ship will improve efficiency and let the company meet increased demand as well as lower transportation costs.

The move is part of a broader effort by Kawasaki Kisen to strengthen its logistics business with automobiles in Southeast Asia.

In January, the company started operating a roll-on/roll-off vehicle carrier in Indonesia that it purchased with a local logistics firm. It is also expanding its fleet of trucks for transporting cars from factory to port and from port to consumer markets.

(The Nikkei Business Daily, March 8 edition)

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