CJ Logistics, Beez to collaborate in Saudi GDC

CJ Logistics signed a memorandum of understanding with Beez Logistics, a Saudi Arabian logistics company, to cooperate in e-commerce distribution services in the region.

CJ Logistics' head of its global unit, Byoung Kang, right, and Beez Logistics' CEO Mussaad Almalohi pose for a photo after signing a memorandum of understanding on May 10. [CJ LOGISTICS]

CJ Logistics signed a memorandum of understanding with Beez Logistics, a Saudi Arabian logistics company, to cooperate in e-commerce distribution services in the region.

The announcement came after the Korean logistics company decided to build a logistics hub in Saudi Arabia.

In a joint effort, the two companies will collaborate in operating the Saudi Global Distribution Center, scheduled to open in 2024. The primary role of this center will be handling international shipping for iHerb, an American healthcare-focused online mall, within the Middle Eastern region.

Based in Riyadh, Beez Logistics has been providing comprehensive logistics services since 2017, catering to various industries such as food and beverages, pharmaceuticals, and health and beauty (H&B).

CJ Logistics intends to leverage Beez Logistics' capabilities in order to offer tailored delivery services that consider Saudi Arabia's unique climatic conditions. Beez Logistics specializes in a cold chain system and last-mile delivery network, which is tailored for country's typical desert conditions with high temperatures and low rainfall, according to CJ Logistics.

In March, Beez Logistics' management team, including CEO Mussaad Almalohi, visited Korea and toured CJ Logistics' infrastructure and systems. Almalohi expressed significant interest in e-commerce logistics, particularly in the thriving Korean H&B market in the Middle East, as quoted by CJ Logistics.

"The Saudi government is making substantial investments in the logistics industry as part of its economic diversification policy known as 'Saudi Vision 2030,'" explained Byoung Kang, head of the Global Unit at CJ Logistics. "CJ Logistics aims to provide logistics services that can serve as a gateway for Korean and global companies seeking to enter the Saudi Arabian and Middle Eastern markets."

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