On September 30, Prologis announced that it had signed a basic agreement with Ally Logistics Property (ALP), a Taiwan-based company that develops and operates logistics real estate and logistics technology businesses, to jointly develop next-generation logistics facilities in Japan and establish a joint venture company.
ALP has developed and operates "OMEGA," a logistics facility centered around large-scale automated warehouses, in four countries/regions: Taiwan, Singapore, Malaysia, and Thailand, making it available for use by multiple companies. It has pioneered the field of logistics facilities utilizing automated warehouses.
Prologis and ALP will establish a joint venture company around the beginning of 2027 to continue developing "OMEGA" in the Japanese market. As the first project, they plan to develop a facility in Kyotanabe City, Kyoto Prefecture, aiming to start construction at the end of 2027.
Image of "OMEGA," the next-generation logistics facility to be developed by Prologis and ALP.
"OMEGA" is a multi-tenant service model that provides large-scale automated warehouse functions as a shared infrastructure for logistics facilities.
A high-density pallet-type automated warehouse will be placed in the center of the logistics facility, and by combining it with AGVs (Automated Guided Vehicles) and other systems, processes such as pallet storage, receiving, and transportation will be automated.
Traditionally, automated warehouses have required system design tailored to the operational methods of the companies using them and the packaging of the goods being stored. Due to their high degree of individuality, they have been introduced as dedicated equipment for a single company.
On the other hand, "OMEGA," jointly developed by Prologis and ALP, allows tenants to use pallet-type automated warehouses as a shared facility and service, along with regular warehouse areas, upon moving into the facility.
Tenant companies can automate their logistics operations without owning large-scale automated warehouse facilities, aiming for labor savings and improved storage efficiency. They will also be able to flexibly respond to fluctuations in volume due to peak and off-peak seasons, as well as business expansion.
Prologis believes that while the Japanese logistics industry faces challenges such as labor shortages, rising labor costs, and the need to adapt to the increasing sophistication of logistics services, only a limited number of companies are able to make the initial investment in large-scale automation equipment. Therefore, they decided to collaborate with ALP on this joint venture.
ALP provides expertise in the integrated planning and design of logistics facilities and large-scale automated warehouses, as well as equipment integration, operation, and maintenance. Prologis is responsible for land acquisition and project formation in Japan, design and construction management, and customer support.
The first project in Kyoto Prefecture is planned to be implemented on the development site for "Prologis Park Kyotanabe 2," which Prologis is currently constructing.
The facility will be developed as a large-scale, multi-story building approximately 40 meters high on a site of approximately 95,000 square meters. The automated warehouse will have a storage capacity of tens of thousands of pallets. Construction is expected to begin at the end of 2027 and be completed around 2030, with plans to expand similar facilities throughout Japan thereafter.
