CJ Logistics to construct Saudi GDC, iHerb shipments

CJ Logistics is constructing a Global Distribution Center (GDC) in Saudi Arabia.

Officials from CJ Logistics and Saudi Arabia pose for a picture at a business launch ceremony of the establishment of CJ Logistics and iHerb's Global Distribution Center in Riyadh, Saudi Arabia, on Wednesday. From front left, Saudi Arabia’s Vice Minister of Ministry of Transport and Logistic Services Rumaih Al Rumaih, CJ ICM Shareholder Fuat Miskavi, Saudi Arabia’s Vice Minister of Commerce Eiman Al Mutairi, South Korea Ambassador to Saudi Arabia Park Joon-yong, iHerb COO Miriee Chang, CJ Logistics CEO Kang Sin-ho, Saudi Arabia’s Minister of Commerce Majid Al Kasabi, Saudi General Authority for Civil Aviation CEO Abdulaziz Al-Duailej, CJ Logistics Global Business Unit CEO Kang Byoung-ku and ZATCA Vice Governor of Strategy and Development Abdullah Al Funtukh. [CJ LOGISTICS]

CJ Logistics is constructing a Global Distribution Center (GDC) in Saudi Arabia.

The company signed a business agreement with the Saudi Arabia General Authority of Civil Aviation on Wednesday to establish the GDC, which will exclusively handle international shipping for iHerb in the Middle East, the company announced Thursday. The GDC system allows global e-commerce companies to store merchandise in nearby delivery hubs in neighboring countries and deliver them promptly to customers upon receiving an order, significantly reducing the previous delivery time of two to three weeks.

The Saudi GDC, targeted for completion in the second half of 2024, will receive an investment of 60 billion won ($45.33 million) and will be located in the Special Integrated Logistics Zone at King Khalid International Airport in Riyadh.

Spanning a gross floor area of 18,000 square meters (193,800 square feet), the facility is expected to handle a daily throughput capacity of 15,000 boxes.

This strategic move positions CJ Logistics to manage orders and deliveries from nine Middle Eastern countries, including Saudi Arabia, the United Arab Emirates and Kuwait, as it taps into the region's e-commerce market.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]