CJ Logistics plans to sign an investment commitment agreement with the KOBC in the third quarter to commence construction early next year and open the new centres in order from 2026 to 2027. — Bloomberg
SEOUL: CJ Logistics Corp, a major South Korean logistics company will invest 600 billion won (US$461.7mil or RM2.15bil), along with the Korea Ocean Business Corp (KOBC), to build three new logistics centres in the United States by 2027.
CJ Logistics and the KOBC had signed a memorandum of agreement for what they call the “North America project” at the logistics company’s US branch office in Illinois last week.
Under the project, the centres will be built near the distribution hubs of Chicago and New York owned by CJ Logistics America-Elwood and Des Plaines in Illinois and Secaucus in New Jersey. The centres will be built on a total of 360,000 sq m of land.
Elwood is adjacent to the terminals of BNSF and Union Pacific, the largest freight railroad companies in the United States; Des Plaines is located near O’Hare International Airport, the largest freight airport in the country; and Secaucus is close to New York Harbour and JFK Airport, according to CJ Logistics.
CJ Logistics plans to sign an investment commitment agreement with the KOBC in the third quarter to commence construction early next year and open the new centres in order from 2026 to 2027.
The company said the upcoming centres will prioritise distributing South Korean companies’ cargo and eCommerce goods to support their business expansion in the United States.
The centres will also be equipped with advanced distribution technologies, including autonomous mobile robots, autonomous forklifts and a smart packaging system.
CJ Logistics also said the project is expected to create around 500 permanent jobs in the areas and contribute to the strengthening of the economic alliance between Seoul and Washington.
“We are committed to supporting South Korean companies and eCommerce sellers as they enter the United States market. By utilising our cutting-edge logistics infrastructure and operational capabilities, we aim to expand the K-Wave into the business sector,” CJ Logistics CEO Kang Sin-ho said.
Kim Yang-soo, the head of KOBC, also said, “The construction of logistics hubs in the United States will enhance the competitiveness of South Korea’s global supply chain and create value-added supply chain services through integration with maritime logistics.”
CJ Logistics currently operates 57 logistics centres across the United States. — Yonhap/The Korea Herald/ANN
