Press Release

Nippon Express Starts Rail/Truck Consolidated Transport Services from the US to San Luis Potosi, Mexico

August 11, 2015

Utilizing the only bonded warehouse operated by a Japanese logistics company in a Mexican FTZ, these services reduce risks during customs clearance and offer reliable transport schedules

Nippon Express U.S.A., Inc. ("NEU"; Kenji Fujii, President), and Nippon Express de Mexico, S.A. de C.V. ("NEMX"; Tadahiro Furue, President), both subsidiaries of Nippon Express Co., Ltd., on June 22 launched the XB3300 Borderless Rail and XB3300 Borderless Truck consolidated transport services to San Luis Potosi on the Central Mexican Plateau.

The two services utilize the San Luis Potosi Logistics Center ("SLC"), opened in November 2014 as the only bonded warehouse there operated by a Japanese logistics company, to avoid the Previo (Note 1) at the border that constitutes the greatest concern when exporting goods to Mexico.

• XB3300 Borderless Rail
  This is the first cross-border rail transport service offered by a Japanese logistics company that ships consolidated cargo from Marion, Ohio, host to a cluster of automotive-related companies, to San Luis Potosi in Mexico.
• XB3300 Borderless Truck
  This service aggregates cargo from across the US in Laredo, Texas near the Mexican border and then transports this cargo by truck to San Luis Potosi in Mexico.

• 
  XB3300 Borderless Rail cargo flow
• 
  XB3300 Borderless Truck cargo flow

Features of both services

1. Previo is carried out not at the border but within the SLC in the presence of Nippon Express employees
   →This reduces the risk of cargo damage/loss
2. Cargo is conveyed to the Nippon Express facility via bonded transport, avoiding the unpredictability of customs clearance times at the border
   →This cuts the risks of delays and makes it possible to readily ascertain the transport/handling status of cargo
3. Use of the WEB DTS rail/truck transport portal site developed by NEU enables Nippon Express to easily produce estimates, arrange shipping, check on transport history, and manage shipping.

Comparison of services

	XB3300 Borderless Rail	XB3300 Borderless Truck
Origin (US)	Marion, Ohio	Laredo, Texas
Destination (Mexico)	San Luis Potosi Logistics Center
Transport time between CFSs	12-13 days	1 day
Freight rates vis-a-vis those for conventional consolidated truck transport services (*other Nippon Express services used for comparison)	Approx. 40% lower	Approx. 10% lower

Estimates made for 750lb (approx. 340kg) of automotive parts (Class 150) being transported from an Ohio plant to the Central Mexican Plateau

To meet the growing need for Canada-US-Mexico logistics among automobile manufacturers and other companies, Nippon Express provides cross-border transport by a variety of modes as well as transport/logistics services utilizing a network of 13 business locations in 10 cities in Mexico, helping customers to build high-quality, low-cost supply chains.

Note 1	Previo is a pre-import declaration system for cargo inspection unique to Mexico under which customs clearance agents make physical checks of the content and quantity of cargo actually removed from containers at the CFS to ensure that they correspond to the information given in the import customs documentation.