A worker stands as parcels are conveyed at a CJ Logistics distribution center in Gwangju, South Korea. — Reuters
SEOUL: CJ Logistics, the nation’s largest logistic firm, affiliated with retail giant CJ Group, is speeding up its overseas expansion this year, industry sources say.
Its Indian subsidiary, CJ Darcl Logistics, aims to make its stock debut in the first half of the year, while the company plans to start construction of three massive distribution centres in the United States later this year.
CJ Logistics, commanding 45% of the domestic parcel delivery market, has been steadily expanding its presence to 34 countries and 271 cities worldwide in its push for global expansion.
Out of total sales of 11.8 trillion won (US$8.86bil) last year, overseas revenue accounted for 4.2 trillion won.
Key global markets for this year include the United States, India and Saudi Arabia.
The North American project, with an investment of about 600 billion won in collaboration with Korea Ocean Business Corp, is slated for phased completion starting in the first half of 2026.
The project will see the establishment of distribution centres at three locations – two in Chicago and one in New Jersey – owned by CJ Logistics America, a subsidiary of CJ Logistics.
Spanning some 360,000 square metres collectively, equivalent to the size of 50 standard international soccer fields, these centres are strategically located near major airports and logistics hubs to provide integrated logistics services linking various modes of transportation.
The planned Chicago sites border the BNSF Railway, the largest US freight rail company, and O’Hare International Airport, a premier cargo hub.
The New Jersey facility is adjacent to Port Newark and John F. Kennedy International Airport.
Upon completion, the North American logistics centres will facilitate the entry of South Korean products into the North American market.
They will also support logistics activities for the construction of three US battery plants, following a 300-billion-won contract acquisition from South Korean companies.
Meanwhile, Indian affiliate CJ Darcl Logistics aims to finalise its listing process by June at the latest, after submitting a preliminary listing request to the Securities and Exchange Board of India in September last year.
CJ Darcl Logistics currently operates 187 bases across India and provides logistics services to over 2,900 business clients.
In Saudi Arabia, a global distribution centre is under construction at Riyadh’s Special Integrated Logistics Zone, which was set up by the Saudi government at the King Khalid International Airport and aims to position the kingdom as a logistics hub by 2030.
With an investment of 60 billion won, the project features a daily processing capacity of 15,000 boxes and is expected to start operating in the latter half of this year.
In November, CJ Logistics inked a memorandum of understanding with Saudi Arabia’s Nesma Group, the entity overseeing the Saudi global distribution centre construction.
The initiative is anticipated to open avenues for CJ ICM, CJ Logistics’ Middle Eastern subsidiary, particularly in the field of heavy goods logistics and inland transportation. — The Korea Herald/ANN
