CJ Logistics to boost Korean exports with three new U.S. logistics centers

[Courtesy of CJ Logistics]

CJ Logistics Corp. is constructing three logistics centers in the U.S. to support the export of Korea’s small and medium-sized enterprises.

The project is being carried out in collaboration with the Korea Ocean Business Corp. (KOBC), which is responsible for providing financial support to domestic shipping companies. CJ Logistics and KOBC signed a memorandum of agreement for the North American project for overseas infrastructure development with the aim of improving national supply chain infrastructure.

The North America Logistics Center is a large-scale project with an investment of up to 600 billion won ($458 million), making it CJ Logistics‘s largest overseas investment. Through this project, CJ Logistics will support the rapid purchase of Korean products by U.S. consumers through its reverse purchasing platform, such as CJ Olive Young Corp.’s global mall.

“We will support the entry of our export companies and e-commerce sellers into the U.S. market and strive to expand the realm of the Hallyu wave beyond culture to the industrial sector through state-of-the-art logistics infrastructure and operational capabilities,” Kang Sin-ho, the chief executive officer of CJ Logistics, said.

CJ Logistics is expected to prioritize the handling of import and export cargo for Korean companies, supporting the overseas expansion of domestic products and contributing to the strengthening of the Korea-U.S. economic alliance through U.S. local investment and job creation.

CJ Logistics will be responsible for the construction of the logistics centers, while KOBC will provide the necessary funding for the construction. This joint investment between the public and private sectors to establish logistics facilities in North America to enhance the export competitiveness of domestic companies is the first of its kind.

The logistics centers being constructed by CJ Logistics’ U.S. subsidiary will be located in three areas: Elwood and Des Plaines in Illinois, as well as Secaucus in New Jersey, with a total area of 360,000 square meters. These locations are all well-known logistics hubs in the U.S.

Elwood is adjacent to the terminals of BNSF Railway Co. and Union Pacific Corp., the largest freight railroad companies in the U.S., enabling delivery throughout the U.S. within one to two days. Des Plaines is located near Chicago and can utilize O‘Hare International Airport, the largest cargo airport in the U.S. Secaucus has the advantage of being close to New York and being able to utilize Newark Port and JFK International Airport.

The two companies plan to sign an investment agreement within the third quarter of this year and begin construction in the first quarter of next year. Completion is scheduled to take place sequentially between 2026 and 2027. A CJ Logistics official stated, “We will support domestic companies in exporting a large number of products through U.S. e-commerce companies,” adding that “it has not yet been decided specifically which companies we will collaborate with.”

CJ Logistics plans to develop an optimal logistics operating model tailored to the local demand in the U.S. In addition to the new logistics centers, it will leverage synergy effects by linking them with the existing 57 logistics centers to promote growth in its U.S. operations. With KOBC entering the U.S. market in cooperation with private companies to enhance the logistics competitiveness of domestic companies, it is expected to greatly contribute to the expansion of the export-import supply chain.

The two companies have also agreed to actively cooperate in pursuing investment projects in logistics infrastructure in countries other than the U.S. following this North American project.

In particular, CJ Logistics plans to use this opportunity to establish itself as a bridgehead for supporting the entry into the North American market for the export-import cargo of domestic companies or e-commerce sales products. In addition to the large-scale investment, there are expectations that it will contribute to strengthening the Korea-U.S. economic alliance, considering the creation of over 500 jobs and the added value resulting from the construction of the logistics centers.