|CJ Logistics steps up business expansion into the Southeast Asian logistics market, spreads K-Logist||2019-08-25|
- CJ Logistics accelerates its investment in M&A and infrastructure as it expands its business in strategic Southeast Asia markets including Thailandand Malaysia
- Brings parcel platform with South Korea’s cutting-edge technology to Thailand through the construction of a central distributioncenter with a daily capacity of 400,000 units
- Aims to become one of the world’s leading logistics companies byexploring new logistics territories through ‘K-Logistics’
CJ Logistics is continuing its business expansion into the Southeast Asian logistics market through the introduction of "K-Logistics" with cutting-edge technologies. With Thailand’s parcel market growing rapidly, the company is growing its business in this strategic market by localizing the Korean parcel platform and building an advanced logistics center with a daily capacity of 400,000 units.
On August 25, CJ Logistics announced that its pilot operation, which applies advanced parcel sorting system wheel-sorters, had been up and running at the Central Distribution Center (CDC) in Bangna, Bangkok since the middle of August. The 71,900-square-meter central distribution center is equipped with the same wheel sorters used at logistics centers throughout South Korea, which can accurately sort up to 400,000 parcels per day. The central distribution center is currently the largest in Thailand with a processing capacity of 13% of the total 3 million daily shipments in the country.
Thailand's parcel market is considered the business opportunity with the greatest potential due to the spread of mobile devices and the rapid expansion of the e-commerce market. E-commerce transactions in Thailand amounted to $23 billion (about 27.2 trillion won) as of 2017, and it is expected that 50% of total retail sales will take place online by 2020. In particular, the Thai government plans to develop the country as a hub of the ASEAN market by promoting high-tech industries and supporting the introduction of e-payment systems in conjunction with the "Thailand 4.0" policy, which is expected to expand the consumer goods logistics market including the parcel industry.
Thailand's average daily handling of parcel packages is currently estimated to be around 3 million, and Hong Kong-based firm Kerry Express, Thailand's largest public company Thai post and DHL are the key players in the market. With its proven quality services in Korea and investment in infrastructure facilities able to handle up to 400,000 units a day, CJ Logistics aims to become a major parcel service provider within a short period of time. In addition, the company will continuously develop current services and operating systems through the introduction of advanced Korean IT technologies, such as delivery systems, smartphone business apps, and delivery tracking systems.
“As the e-commerce market in Thailand grows at more than double-digit rates every year, and the country’s younger generation actively embraces the mobile environment, we are confident about the growth of the parcel business in the country,” CJ Logistics, said. “We aim to become Thailand’s No.1 parcel company by transferring know-how and cutting-edge technologies from Korea, developing major infrastructure and expanding service points across Thailand.”
In addition to the parcel business, CJ Logistics has been providing one-stop logistics services to local and multinational companies including contract logistics (CL), forwarding for import and export, and transportation projects since starting business in Thailand in 1998.
Besides Thailand, CJ Logistics also focuses on the growth of K-Logistics in key markets under the South Korean government’s New Southern Policy including Malaysia and Vietnam. It established a joint venture with the Malaysian logistics firm CJ Century Logistics in September 2016 and a joint venture between CJ Transnational and TDG Group in Philippines in December. In addition, it also acquired the logistics and shipping division of Vietnam's largest logistics company Gemadept to build a strong global network across Southeast Asia.
Currently, CJ Logistics operates in 37 countries, 148 cities, and 266 sites globally. The company is moving forward to lead the advanced logistics industry by utilizing its TES (Technology, Engineering, and System & Solutions) capabilities. In addition, the company aims to become one of the world’s leading logistics companies with its ‘Pan Asia No.1 Strategy,’ building its own logistics network across Asia.
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