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  4. Daido Steel and Proterial Begin Joint Long-Distance Round-Trip Transportation with Modal Shift
Mgmt

Daido Steel and Proterial Begin Joint
Long-Distance Round-Trip Transportation with Modal Shift


Daido Steel Co., Ltd.
Proterial, Ltd.

Daido Steel Co., Ltd. (hereinafter “Daido Steel”) and Proterial, Ltd. (hereinafter “Proterial”) jointly launched a system for the long-distance round-trip transportation of cargo between Aichi Prefecture and the San-in region involving a modal shift in cooperation with logistics operators Maruta Transport Co., Ltd. (hereinafter “Maruta Transport”) and LOGISTEED West Japan, Ltd. (hereinafter “LOGISTEED West Japan”). The system began operating in August 2026.

1.Background

Conventionally, Daido Steel and Proterial both used trucks for deliveries between Aichi Prefecture and the San-in region.

Long-distance transportation is the focus in this route, and the number of drivers capable of driving vehicles for transporting special steel materials was limited, so the driver shortage and long working hours were issues. The difficulty of maintaining transport capabilities was becoming apparent.

Another issue in long-distance truck transportation is CO2 emissions. From the perspective of the reduction of environmental impact, it was also necessary for the companies to reconsider their means of transportation.

2.Overview of joint transportation system

Daido Steel and Proterial, the shippers, began to collaborate in the joint use of steel-dedicated rail containers to achieve a modal shift to rail transportation using containers in both directions.

Cargo from Daido Steel is carried on the railway from Aichi Prefecture to the San-in region, and Proterial cargo is transported in the return direction. This ensures loaded transportation in both directions, avoiding the need to transport empty containers.

Diagram

Previously

Using the new system

3.Positive effect of the joint transportation system

This joint transportation initiative is epoch-making in that two companies in the same industry are working together to realize a modal shift to rail transportation using containers in both directions. This advanced inter-business collaboration addresses the compounding issues of the driver shortage, the future transportation capacity shortage and the need to reduce environmental impact to increase the sustainability of logistics operations.

Environment: An approx. 62% reduction in CO2 emissions (expected annual effect of the modal shift from truck transportation to rail transportation for the route in question)

Truck driving hours: Approx. 76% reduction in total truck driver driving hours (expected annual effect of the modal shift from truck transportation to rail transportation for the route in question)

4.Future outlook

Daido Steel and Proterial will continuously monitor the volume of goods transported, the CO2 reduction effect and operational issues and make improvements to establish this system as a stable and sustainable transportation scheme.

Additionally, to help resolve social issues related to logistics such as transportation capacity shortages and the reduction of environmental impact, the two companies will work to improve the reproducibility and scalability of this system to expand the companies participating in it, the cargo items handled and the transportation routes and establish a sustainable logistics network.

5.Statements from the companies

Yoshimichi Onishi, Executive Officer and General Manager of Sales Management Department, Daido Steel Co., Ltd.

We have realized this initiative in collaboration with Proterial, Ltd. and the other companies involved with a view toward the establishment of a sustainable logistics system in view of the intensifying shortage of drivers and the future transportation capacity shortage in the logistics industry. Our freight is transported from Aichi Prefecture to the San-in region, and Proterial’s is transported on the return. In addition to extending our transportation routes using steel-dedicated rail containers, the round-trip use of containers is another major achievement.

In the future, we will seek to collaborate more closely with competitors in areas where we can to increase the number of cargo items, transport routes and collaboration with new partners and accelerate the establishment of a sustainable logistics network.

Masamichi Mizukoshi, Chief Procurement Officer (CPO) and Chief Logistics Officer (CLoO), Proterial, Ltd.

This initiative is a significant step toward addressing the shortage of drivers, enabling us to prepare for the future transportation capacity shortage and reduce CO2 emissions from transportation. It also reduces our dependency on long-distance truck transportation and helps us continually ensure the stability of our transportation capacity. The realization of this system in collaboration with Daido Steel Co., Ltd. and the other companies involved is very significant from the perspective of addressing logistics-related social issues.

Under our logistics reform project, we are currently implementing various measures to establish a sustainable logistics structure. As part of this project, we will increase the number of cargo items and the transport routes in this scheme and expand it to other bases to upgrade this scheme and continue to achieve progress in our logistics reform project.

2026