CJ Logistics aims to boost Korean exports with three new US logistics centers

CJ Logistics Corp. builds three logistics centers in the United States to support the export of Korea’s small and medium-sized enterprises.

The project is being carried out in cooperation with Korea Ocean Business Corp. (KOBC), which is responsible for providing financial support to domestic shipping companies. CJ Logistics and KOBC signed a Memorandum of Agreement for the North American Overseas Infrastructure Development Project, aiming to improve the national supply chain infrastructure.

The North America Logistics Center is a major project with an investment of up to 600 billion won (US$458 million), making it CJ Logistics’ largest overseas investment. Through this project, CJ Logistics will facilitate the quick purchase of Korean products by US consumers through its reverse purchase platform, like CJ Olive Young Corp.’s global mall.

“We will support the entry of our export companies and e-commerce sellers into the US market and strive to expand the Hallyu Wave’s scope beyond culture to the industrial sector through state-of-the-art logistics infrastructure and operational capabilities.” Kang Sin-ho, the CEO of CJ Logistics, said.

CJ Logistics is expected to prioritize handling import and export cargo for Korean companies, support overseas expansion of domestic products, and help strengthen the Korea-US economic alliance through local investment in the United States and job creation.

CJ Logistics will be responsible for the construction of the logistics centers, while KOBC will provide the necessary funds for the construction. This joint investment by the public and private sectors to build logistics facilities in North America to improve the export competitiveness of domestic companies is the first of its kind.

The fulfillment centers built by CJ Logistics US subsidiary will be located in three areas: Elwood and Des Plaines in Illinois and Secaucus in New Jersey, totaling 360,000 square meters. These locations are all well-known logistics centers in the USA

Elwood is adjacent to the terminals of BNSF Railway Co. and Union Pacific Corp., the largest rail freight companies in the United States, and allows for one to two day delivery anywhere in the United States. Des Plaines is close to Chicago and has access to O’Hare International Airport, the largest cargo airport in the United States. Secaucus has the advantage of being close to New York and has access to Newark Port and JFK International Airport.

The two companies plan to sign an investment agreement in the third quarter of this year and start construction in the first quarter of next year. Completion is scheduled to take place sequentially between 2026 and 2027. A CJ Logistics official stated, “We will support domestic companies to export a large number of products through US e-commerce companies,” adding, “It has not yet been specifically decided which companies, with whom we will work together.”

CJ Logistics plans to develop an optimal logistics operating model tailored to local demand in the United States. In addition to the new fulfillment centers, the company will leverage synergy effects by linking it with the existing 57 fulfillment centers to support the growth of its US operations. With KOBC entering the US market in cooperation with private companies to improve the logistical competitiveness of domestic companies, the company is expected to make significant contributions to expanding the export-import supply chain.

The two companies have also agreed to actively collaborate in pursuing logistics infrastructure investment projects in countries other than the United States, following this North American project.

In particular, CJ Logistics would like to seize this opportunity to establish itself as a beachhead for supporting domestic companies’ export-import cargo entry into the North American market or e-commerce sales products. In addition to the large-scale investment, there is an expectation that it will help strengthen the Korea-US economic alliance with the creation of over 500 jobs and the added value generated by the construction of the logistics centers.

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