#Japan #Tokyo #Kasumigaseki Capital #X NETWORK #J MADE

Kasumigaseki Capital and Partners Win Prestigious Award

In a remarkable achievement, Kasumigaseki Capital Inc. and X NETWORK Inc., in collaboration with J MADE Inc. and Osaka High-Speed Dairy Co., have jointly received the Grand Prize in the Social Implementation category at the "Physical Internet Awards 2026." This award is organized by the Japan Physical Internet Center (JPIC) and supported by Japan's Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism.

Award Overview

The theme of the award was "Building Co-Creation Cold Chain," where the collaboration aimed to optimize logistics resources across society based on the idea of Physical Internet. Their efforts focus on constructing a cold chain platform utilizing frozen warehouses as a network. The motivation behind this initiative stems from significant seasonal fluctuations in demand within the frozen and refrigerated logistics sector, which contrasts with the conventional model of long-term contracts typically based on large volume use. This gap makes it challenging to secure the necessary space flexibly when required.

The industry is also beset by structural issues, such as the fragmentation of warehouses, transportation, and information across different operators. This scenario results in inadequate real-time visibility of available resources and a reliance on manual, traditional processes. Moreover, with the ongoing labor shortage crisis, there is a strong push for automation and reduction of environmental and labor burdens.

With these challenges in mind, the new platform aims to achieve the effective utilization of logistics resources and operational efficiency by creating interconnected frozen warehouses, thereby advancing the sophistication of frozen and refrigerated logistics.

Evaluation Criteria

The award committee recognized numerous critical factors in the approach taken by the partnership:

• - The business model significantly embodies the concept of Physical Internet within the cold chain domain and seamlessly integrates both physical and digital aspects.
• - The initiative of creating a cold chain network platform led by major developers is relatively unprecedented and showcases high feasibility.
• - Comprehensive automation contributes not only to increased convenience as a service but also alleviates labor shortages and pressures in the logistics sector.
• - Anticipated future expansion beyond mere storage to include transportation services.

Business Collaboration Cases

• - Collaboration with J MADE: By linking their cold storage services, COLD X NETWORK, with J MADE’s own storage facilities, they aim to expand fulfillment services targeting e-commerce and D2C sectors. This cooperative strategy optimizes the use of limited warehouse space, allowing for better operations and business growth.

• - Collaboration with Osaka High-Speed Dairy: In response to the cold storage demands in the Kansai region, a strategic partnership has been forged which enables them to handle short-term and small-lot storage needs regardless of the operational presence of their facilities. Future plans include exploring system integration for a unified cold chain network.

What is Physical Internet?

The concept of Physical Internet applies the mechanisms of the internet to logistics, creating a new model that facilitates the efficient transport of goods across corporate boundaries. By establishing standardized rules, logistics networks can connect and share resources, aiming for the optimization of the entire supply chain.

Recent challenges in the logistics industry, such as driver shortages, rising transportation costs, and an increase in small package deliveries, have made this innovative structure garner significant attention both domestically and internationally. Traditional logistics has often operated in silos, leading to inefficiencies like vacant truck and warehouse space. Addressing the pressing issue of transportation capacity shortages, particularly highlighted by the upcoming 2024 crisis, is crucial.

The Physical Internet leverages digital technology to visualize the operation statuses of goods, vehicles, and warehouses, enabling resource sharing among companies. This aims to boost efficiency and foster a sustainable logistics framework, promising increased industry productivity and reduced environmental impacts.

The government is actively promoting the societal implementation of the Physical Internet, as reflected in its roadmap aiming for completion by 2040.

Award Statement

Mr. Ryo Sugimoto, Vice President of Kasumigaseki Capital and CEO of X NETWORK, expressed his thoughts on the pressing social issues surrounding logistics. He stated, "As social challenges surrounding logistics become more profound, the Physical Internet is thought to be an indispensable concept for the logistics of the next era. Our group has promptly adopted this concept in the cold refrigeration logistics field, implementing it continuously."

Furthermore, he emphasized the need for efficient logistics processes, given limited resources. The group's initiative of viewing warehouses as interconnected networks rather than isolated points expands operational options. By balancing warehouse sharing and digitalization, they offer services that utilize multiple locations synergistically. This thorough automation contributes to addressing labor shortages in logistics while also reducing environmental burdens, which he believes is what the award recognizes. The company aims to explore expansions beyond storage to include distribution areas, contributing to the realization of sustainable logistics infrastructure in the future.

Kasumigaseki Capital's Logistics Business

In response to the growing demands for frozen food and the expanding e-commerce market, Kasumigaseki Capital is addressing the supply shortage of frozen and refrigerated warehouses. The company is focused on developing rental-based cold storage facilities and is expanding its logistics infrastructure under the brand "LOGI FLAG." Warehouse constructions are anticipated in Chiba, Nagoya, and Kanagawa by 2026.

LOGI FLAG Warehouse Brand

LOGI FLAG is Kasumigaseki Capital's warehouse brand that features multi-tenant logistics facilities catering to three different temperature zones: frozen, refrigerated, and ambient. The goal is to provide environmentally-friendly and innovative logistics hubs that meet contemporary customer demands and support business and daily life.

Discover LOGI FLAG Brand

COLD X NETWORK Freezing Storage Service

COLD X NETWORK offers Japan’s first web-based freezing storage service, allowing for utilization from just one pallet per day. It encompasses everything from availability checks to shipment reservations and inventory management online. No upfront costs such as deposits are required, and it accommodates various needs from short-term to bulk shipments.

Explore COLD X NETWORK Service