stringent laws requiring foreign operators to form joint ventures with local players before they’re permitted to start operations in China

stringent laws requiring foreign operators to form joint ventures with local players before they’re permitted to start operations in China
process of licensing and obtaining customs clearance is time consuming

negative environmental impact – green house gas emissions – Companies are mandated to finance the reduction in emissions elsewhere

Some of the regulatory bodies such as ICAO and IATA started pushing pressure on safety for aircraft. This leads to increase in costs of compliance and reduces the profit margin of the airlines as well as the air cargo service providers

Japan had a FDI to gdp ratio of only 3.8 % , along with high tax rates and employment costs , non English speaking environment and strong cultural differences making it difficult to attract foreign investors

Free Trade agreement are critical to establish success in highly import/export oriented countries. Helps provide a new market for the companies that are operating in this space

High speed rail network and roadway (cheap alternatives) – biggest competitors
Competition from other international integrators like DHL (Germany), FedEx (USA) – Greater logistics capability and multiple local players

high tax rates, labor costs, lowest level of FDI among industrialised nations, lower net operating loss carrying periods

SATS cool port in Singapore had a floor space of 8000 sq m and 18 different cold rooms while facilities at Tokyo airport were smaller, lacked advanced technology and offered limited services

In Japan SATS would face competition from ocean cargo industry , like china , South Korea , Taiwan and Hong Kong which are among the top trading partners for Japan as they are closer to Japan and better connected via maritime links compared to Singapore

Productivity is hampered since carbon emission is fixed and regulated. Trading carbon between businesses would be expensive, A direct effect on the government and has potential legal repercussions.
due to Covid Food, medicine, fuel, logistics, and supply chain are crucial for ensuring survival. Global economy is the entire world under one roof.
prevents the transfer of necessary products and commodities
Sri Lanka’s political unrest. No other nations will assist you.
It would be exceedingly difficult to establish a new supply chain and the current one would be interrupted.

Per unit economics is going to get a competition from Belt & Road Initiative by China which would bring the cost of cargo to one sixth of Air Cargo. Also, number of trains operating would be 21 on a daily basis which would also reduce the constraint of resources for train cargo.

Consumer attitudes and perceptions towards air cargo and its environmental impact, changes in population demographics and consumer behavior, consumer expectations for faster delivery of goods

Chinese airports are controlled mainly by their governments and the stringent laws which these government agencies increase the costs for the cargo industry

The ocean cargo industry in Japan is competitive with SATS since Japan’s key trading partners are located closer to Japan and have greater maritime ties than Singapore has. These countries and regions include China, South Korea, Taiwan, and Hong Kong.

Japan’s population has been on decline for a long time and China has started to become a country with increasing number of old people. So pharma market growth has bigger potential in China, therefore it makes sense to choose China

The challenge is much larger in China than in Japan because Japan for once has already started with carbon offsetting while for China it gets incredibly difficult due to high pollution caused by manufacturing industries and hence any tie up with a state owned manufacturing company could cause lots of problems for the companies

The trade war between China and US: if tensions arise, the US might need to look at alternate options and southeast Asia might become the next viable option. China’s trade with other nations might also increase; hence, this aspect presents equal opportunities for both China and Japan.

While environment and product demand related would remain same throughout, the political factor could be a differentiator. While China is rigged with political bureaucracy and whims and fancies of the state government. In japan though, because SATS has already partnered with TFK Corporation and hence cane expect better cooperation from the state.

Japan’s ocean cargo industry is competitive with SATS because Japan’s major trading partners are geographically closer and have stronger maritime linkages than Singapore. China, South Korea, Taiwan, and Hong Kong are among these nations and territories.

Changing consumer preferences for convenience and sustainability may drive demand for more efficient and environmentally-friendly logistics and air travel services, which SATS Ltd can capitalize on.
The increasing trend of e-commerce may also lead to more cargo demand and opportunities for SATS Ltd to expand its e-commerce logistics services.

Japan imported $665 million in pharma goods from Singapore. Considering the fact that SATS ltd is already operational in Singapore, constructing a more linear cold chain supply chain with a common operator on both ends (Singapore and Japan) there are opportunities for growth in trade irrespective of the ocean cargo trade that Japan is involved in.

Perishable items such as seafood, fruits, vegetables, and dairy products make up a large portion of Japan’s imports. Due to their short shelf lives, these products required cold chain logistics, which is SATS’s USP. Therefore, growing in Japan offers a superior possibility.