CJ Logistics and KOBC to Inve...

CJ Logistics and KOBC to Invest $457M to Construct Large-Scale Logistics Centers in the US

Jun 29, 2023

(Image Source: CJ Logistics)

CJ Logistics, a leading innovative supply chain and technology company based in South Korea, has disclosed a strategic partnership with the Korea Ocean Business Corporation (KOBC) to establish large-scale logistics centers in the United States.

Valued at approximately $457 million (KRW 600 billion), these logistics centers will prioritize the handling of import and export cargo for both global and South Korean companies, facilitating their expansion into overseas markets and promoting trade activation. Additionally, the initiative aims to bolster the economic alliance between the United States and South Korea by fostering local investment and job creation.

The joint venture, known as the "North American Project," involves the construction of large-scale logistics centers across three sites owned by CJ Logistics America. These sites are strategically located in key logistics and distribution hubs such as Chicago and New Jersey, encompassing a total area of 3,875,000 square feet, equivalent to 50 international standard soccer fields. While CJ Logistics will provide the land, KOBC will secure funding for the construction of the logistics centers.

CJ Logistics will assume responsibility for operating these three logistics centers, focusing primarily on handling import and export cargo for global and South Korean companies, as well as e-commerce sellers, thereby supporting their entry into the US market. The agreement for investment commitment is expected to be signed in the third quarter of this year, with construction scheduled to commence in the first quarter of next year. The phased completion is targeted between the first half of 2026 and 2027.

“We are committed to supporting our North America customer base, South Korean companies and e-commerce sellers as they enter the U.S. market. By utilizing our cutting-edge logistics infrastructure and operational capabilities, we aim to increase customer value, serve as a strategic partner to our customers who can benefit from global and multimodal solutions, and expand the ‘K-Wave’ into the business sector," said Byoung Kang, CEO of CJ Logistics.

Through the development of these strategic hubs, CJ Logistics is optimizing its global logistics model to meet customer demand for integrated, end-to-end supply chain solutions. Connecting the newly constructed logistics centers with its existing network of 57 operational logistics centers across the US will generate synergy and foster innovative growth in its US operations.

Source: CJ Logistics and Korea Ocean Business Corporation to Invest up to $457 Million in Creating Large-scale Logistics Centers in the US

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