Yamato Holdings Co yesterday signed an agreement with two Shanghai companies to invest in a distribution venture as it seeks to tap into the city's express delivery industry.

Japan's biggest parcel delivery service operator will acquire new shares from Shanghai Bus Logistics Co, which is equally owned by Shanghai Jiushi Corp and Shanghai Kongkong Investment Co, to own a 65-percent stake in the distribution venture.

"Yamato will spend about 200 million yuan (US$29 million) to 300 million yuan for the stake, and our business will start in January next year," said Shao Huiming, chairwoman of Bus Logistics, which will be renamed to Yamato (China) Transport Co.

The joint venture will set up a distribution network in the city to offer door-to-door parcel delivery service because it is keen to tap the demand generated by the country's stimulus package to boost the logistics industry, the firms said.

They will gain from the city's growing express delivery industry, which continued to grow by 20 percent annually.

Bus Logistics owns more than 600 vehicles and deals in road, container and cargo transport, feeder services, global freight forwarding and warehousing services.

(Shanghai Daily August 27, 2009)