Southeast Asia is experiencing a boom in infrastructure construction in many places as urban development is occurring in rapid economic growth. This region has re-emerged as an arena for global leading businesses on the basis of the rapid growth of the e-commerce market led by the increased purchasing power of consumers and the growth of internet users. CJ Logistics, a global innovative logistics company is taking advantages of the public infrastructure construction and e-commerce markets to develop various projects. Here are some achievements that CJ Logistics recently made in Southeast Asia with its differentiated logistics capabilities and global competitiveness.
Transports Ho Chi Minh Line 1 Metro Trains… Promotes “K-Logistics” at the center of Vietnam
Ho Chi Minh City, the heart of Vietnam's economy, is focusing on building public transportation infrastructure to improve its poor traffic conditions. As part of this vision, the city began a Metro Line 1 construction project in August 2012 that runs about 19.7km from Ben Thanh in Ho Chi Minh City to Long Binh. CJ Logistics is also working on this important infrastructure construction project.
CJ Gemadept, the largest logistics company in Vietnam and a global family company of CJ Logistics, is in charge of transporting 51 electric trains with a total weight of 1,887 tons by the scheduled opening date of Ho Chi Minh Line 1 in 2021. As the first task, the company successfully completed its transportation of 3 trains, each of which is 21 meters long and weighs 37 tons, on October 26th. At the site, three tow trucks and another three hydraulic modular trailers were used. Thanks to them, it was possible to safely travel a distance of 26km from the Kin Hoi port in Ho Chi Minh City to the vehicle base in Long Bien in about 4 hours. CJ Gemadept will also transport the remaining 48 trains according to the construction progress.
CJ Gemadept was launched in 2017 when CJ Logistics took over the logistics and shipping divisions of Vietnam's No. 1 general logistics company “Gemadept.” After several years of successful logistics of construction materials, CJ Gemadept’s know-how finally came to be highly evaluated. As such, the local networks, infrastructure, and awareness of overseas subsidiaries and global family companies are the driving force behind CJ Logistics' success in the Southeast Asian market.
Bold Leap to Become Malaysia's No. 1 Logistics Company
Meanwhile, there is another country that has emerged as a logistics strategic location in Southeast Asia, with an annual average growth of 9.8% in the e-commerce market in recent years: Malaysia. In February this year, CJ Logistics jumped into the Malaysian logistics market with “CJ Century” created by integrating the CJ local subsidiary with Century acquired in 2016.
Malaysia has a relatively high level of consumer purchasing power, with its gross domestic product (GDP) per capita ranking third among Southeast Asian countries. Also, as the government continues to put emphasis on policies to foster the manufacturing industry, such as electric/electronics and automobiles, it is expected that the demand for logistics will increase throughout many industries, such as manufacturing and e-commerce. Against this backdrop, the integrated corporation CJ Century is operating a logistics center of 403,000 square meters, equivalent to 56 soccer fields, with around 1,500 logistics professionals, and 1,000 vehicles and equipment to quickly respond to such logistics demand. The launch of CJ Century has a great significance in that the combination of two enterprises’ networks and infrastructure have increased their logistics operation capabilities, expanded customer base, and enhanced productivity.
Entering the Southeast Asian market, showcasing CJ Logistics' state-of-the-art delivery service through TES
The e-commerce market in Thailand is growing as fast as in Malaysia. Already in 2017, e-commerce transactions in Thailand amounted to $23 billion (about 27.2 trillion won), and it is estimated that 50% of total retail market sales would take place online in 2020. In the fierce competition with Thailand's largest public company Thailand Post and Hong Kong-based company Kerry Express as well as other global logistics companies, the secret weapon of CJ Logistics was none other than TES (Technology, Engineering, Systems & Solutions).
In October 2019, CJ Logistics launched “Smart Hub Bangna,” its first overseas base, which was combined with TES technology. Smart Hub Bangna, Thailand's largest logistics terminal with the area of 71,900㎡, has the best infrastructure capable of sorting up to 400,000 parcel products per day. This has become possible by applying the “wheel sorter,” which automatically sorts boxes by delivery area using the information scanned by the Intelligent Scanner (ITS). As such, CJ Logistics spares no effort to provide faster and more efficient one-stop logistics services by actively introducing cutting-edge technologies to local distribution centers.
Currently, CJ Logistics provides a variety of logistics services for both B2B and B2C across the entirety entire of Southeast Asia, from project logistics to delivery services. The company is contributing to taking logistics to the next level through active M&A and the introduction of advanced logistics technology. Going forward, CJ Logistics will take the lead in promoting the status of Korean logistics by introducing Korea's advanced logistics services to countries around the world.
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