Strategic Hubs
CJ Logistics, a leading innovative technology company in Korea, has announced a strategic partnership with the Korea Ocean Business Corporation (KOBC) to construct large-scale logistics centers in the United States through a public-private collaboration. With a total investment of approximately $457 million (KRW 600 billion), these logistics centers will prioritize handling the import and export cargo of Korean companies, facilitating their overseas expansion and trade activation. Additionally, this initiative aims to strengthen the economic alliance between the U.S. and Korea by fostering local investment and job creation.
On June 28, CJ Logistics revealed its plans for the "North America Project" in collaboration with KOBC, with the goal of enhancing the national logistics supply chain in the U.S. through a substantial investment of maximum $457 million.
The project entails the construction of large-scale logistics centers across three sites owned by CJ Logistics America, located in key logistics and distribution hubs such as Chicago and New York, totaling 360,000 square meters. These sites collectively span an area equivalent to 50 international standard soccer fields. While CJ Logistics plans to contribute the land, KOBC will secure funding for the construction of the logistics centers.
CJ Logistics will assume responsibility for the operation of these three logistics centers, with a primary focus on handling the import and export cargo of Korean companies and e-commerce sellers, thereby supporting their market entry into the U.S. The investment commitment agreement is expected to be signed within the third quarter of this year, and construction is scheduled to commence in the first quarter of next year, with a phased completion targeted from the first half of 2026 to 2027.
In a ceremony held on June 19, Sin-ho Kang, CEO of CJ Logistics, and Yang-soo Kim, CEO of KOBC, signed an agreement to implement this project at CJ Logistics America's office in Des Plaines, Illinois. Following the agreement, the two CEOs and executives of CJ Logistics and KOBC visited the planned site for the logistics center to conduct an inspection.
CJ Logistics and KOBC have also committed to active cooperation not only on this project but also on investments in logistics infrastructure in the U.S. and other countries to enhance Korea's global logistics competitiveness.
Strategically located in three major U.S. cities or logistics hubs, CJ Logistics' sites offer significant advantages. Elwood in Illinois, adjacent to the terminals of BNSF and Union Pacific, the largest freight railroad companies in the U.S., provides efficient transportation and delivery nationwide within one to two days via road and rail networks. Des Plaines in Illinois is located near Chicago, one of the three largest cities in the States and major consumer markets, as well as O'Hare International Airport, the largest freight airport in the country. Secaucus in New Jersey, situated near New York Harbor, JFK Airport, and New York City, offers access to another major consumer market.
CJ Logistics is developing an optimal logistics operation model based on local demand and logistics strengths. It will generate synergy by connecting the newly constructed logistics centers with its existing network of 57 operational logistics centers across the U.S. This connection will act as a catalyst for innovative growth in the business conducted in the U.S.
Moreover, CJ Logistics will introduce advanced technologies such as big data and AI, leveraging its TES technology, which has been successfully applied in Korea, to the new logistics centers. The company also plans to enhance efficiency through the implementation of Autonomous Mobile Robots (AMR), Autonomous ForkLifts (AFL), and smart packaging systems.
The North America Project holds significant meaning as it represents a joint effort between a government entity and a private enterprise to support Korean companies' entry into the U.S., the world's leading economic market, and raise their global competitiveness.
While Korean companies have made recent investments in various sectors such as electric vehicles, batteries, and semiconductors in the U.S., this collaboration between the public and private sectors is notable as the first of its kind. The project is projected to generate an investment of approximately $457 million and create 500 permanent jobs, along with additional employment opportunities, contributing to the strengthening of the U.S.-Korea economic alliance.
Commenting on the prpject, Mr. Kang, CEO of CJ Logistics, said, "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."
Mr. Kim, CEO of KOBC, added, "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." He further emphasized, "We will continue to explore opportunities to enhance global logistics competitiveness by leveraging the resources, capabilities, and expertise of both sides."
In the first quarter of this year, Korea's exports to the U.S. recorded $28.6 billion, a 3.5% increase compared to the same period last year. The U.S. ranked as Korea's largest trade surplus country during this period, with a trade surplus of $7.2 billion. E-commerce exports to the U.S. also saw significant growth, reaching $323 million in the previous year, a 23.8% increase compared to the previous year, according to the Korea Trade Statistics Promotion Institute.