Establishing Logistics Base
Vietnamese media reported on October 9 that CJ Korea Express signed a contract with Gemadept Logistics in order to acquire the majority of Gemadept Shipping shares. The size of the contract is estimated at US$120 million.
Gemadept Logistics is a subsidiary of Gemadept, which is the largest logistics company in Vietnam, and Gemadept Shipping is a subsidiary of Gemadept Logistics. Gemadept was established in 1990 and listed on the Ho Chi Minh City Stock Exchange in 2002. The company posted US$162 million in sales and US$20 million in pre-tax net profit last year.
The contract is expected to enable CJ Korea Express to cover the entire Southeast Asian region with its logistics network. Gemadept has logistics infrastructure in not only Vietnam but also Laos, Cambodia, etc. The business of CJ Korea Express in Southeast Asia is likely to pick up speed based on the contract.
CJ Korea Express is aiming to become one of the global top five logistics companies by 2020. In April this year, the company acquired Darcl Logistics in India and Ibrakom in the UAE. According to industry sources, CJ Korea Express is expected to be able to rank with Nippon Express, the biggest logistics company in Asia, once the process of acquisition in Vietnam is completed.