A logistics center planned to be built in the United States by CJ Logistics Corp. and the Korea Ocean Business Corporation is seen in this photo provided by CJ Logistics on June 28, 2023.
SEOUL, June 28 (Korea Bizwire) — CJ Logistics Corp., a major South Korean logistics company, said Wednesday it will invest 600 billion won (US$461.7 million), along with the Korea Ocean Business Corp. (KOBC), to build three new logistics centers in the United States by 2027.
CJ Logistics and the KOBC signed a memorandum of agreement for what they call the “North America project” at the logistics company’s U.S. branch office in Illinois last week.
Under the project, the centers 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 centers will be built on a total of 360,000 square meters of land.
Elwood is adjacent to the terminals of BNSF and Union Pacific, the largest freight railroad companies in the U.S.; Des Plaines is located near O’Hare International Airport, the largest freight airport in the country; and Secaucus is close to New York Harbor 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 centers in order from 2026 to 2027.
The company said the upcoming centers will prioritize distributing South Korean companies’ cargo and e-commerce goods to support their business expansion in the U.S.
The centers 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 Korean companies and e-commerce sellers as they enter the U.S. market. By utilizing 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 U.S. will enhance the competitiveness of Korea’s global supply chain and create value-added supply chain services through integration with maritime logistics.”
CJ Logistics currently operates 57 logistics centers across the U.S.
(Yonhap)
