CJ Logistics Co.’s terminal in Icheon, south of Seoul, is seen in this photo provided by the logistics company.
SEOUL, May 12 (Korea Bizwire) — South Korean logistics giant CJ Logistics Corp. is making a foray into the Middle East market by establishing a distribution center in Saudi Arabia, targeting cross-border e-commerce demand.
The company said Thursday it had signed an agreement with Saudi’s General Authority of Civil Aviation to establish a global distribution center (GDC) responsible for handling international shipping for the U.S.-based online shopping mall iHerb in the Middle East.
The GDC allows global e-commerce companies to store merchandise in nearby delivery hubs in neighboring countries and deliver goods promptly to customers upon receiving an order.
The establishment of distribution centers by continent is emerging as a new trend in the cross-border delivery market since it can significantly reduce the previous delivery time of two to three weeks.
The Saudi GDC will be located in the Special Integrated Logistics Zone at King Khalid International Airport in Riyadh.
The GDC, scheduled to be completed in the latter half of 2024, will be responsible for e-commerce orders from nine countries in the Middle East region, including Saudi, the United Arab Emirates, and Kuwait.
Using state-of-the-art technology based on robotics and AI, the Saudi GDC is expected to be able to handle a daily throughput capacity of 15,000 boxes.
CJ Logistics previously signed an eight-year contract with iHerb to offer logistics services for the Middle East region.
Ashley Song (ashley@koreabizwire.com)
