Risk of Cost Overruns and Failure to Achieve Expected Benefits at Large Logistics Facilities
First written in FY2018. 1 of 4 entries say "Mitigated", first in FY2021. Latest entry: FY2026.
0 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「The Group continues to develop logistics facilities. To strengthen cross-dock functions in the Kanto area and further improve the efficiency of its transport network, it plans to commence operations at the Kanto Hub Centre in July 2026. It also plans to commence operations at large cross-dock centres in Kansai in the fiscal year ending March 2027 and Kyushu in the fiscal year ending March 2029, and intends to continue maintaining and strengthening sustainable transport and delivery infrastructure.」
The facility investment plan has been specified, with the Kanto Hub Centre scheduled to begin operations in July 2026, the large Kansai cross-dock centre in the fiscal year ending March 2027, and the large Kyushu cross-dock centre in the fiscal year ending March 2029. - FY2025WorsenedAnnual report
「The Company plans to continue strengthening its infrastructure, including the scheduled commencement of operations at large cross-dock centres in the Kanto and Kansai regions in the fiscal year ending March 2027 and in Kyushu in the fiscal year ending March 2029. If costs associated with facility construction exceed expectations, or if the facilities fail to deliver the expected benefits after completion, the resulting increase in expenses or impairment losses, among other effects」
Following X Frontier, plans have been disclosed to build new large cross-dock centres in Kanto, Kansai and Kyushu, expanding the scope of future risks related to construction cost overruns and failure to deliver expected benefits. - FY2021MitigatedAnnual report
「The Company built X Frontier in Koto Ward, Tokyo, to improve the efficiency of line-haul transportation and increase capacity, and commenced full-scale operations in the fiscal year ending March 2021.」
The large logistics facility construction plan reached the full-scale operating stage of X Frontier, reducing the risk related to incomplete construction. - FY2018First statedAnnual report
「The Company currently plans to build a large logistics facility in Koto Ward, Tokyo, to improve the efficiency of line-haul transportation and increase handling capacity. If costs associated with future facility construction, including this new facility, exceed expectations, or if the facility fails to deliver the expected benefits after construction, the resulting increase in expenses or impairment losses, among other effects」
The disclosure identifies the purpose of investing in large logistics facilities, along with the possibility of higher-than-expected costs, failure to deliver expected benefits and impairment losses.