HIGHLIGHTS

• These centers will handle storage, inventory management, packaging, and parcel transfers to Korea’s urban areas.

• These new CJ Logistics hubs will ship packages directly to the clues and have them delivered within a day. This isn’t the same as ordinary delivery services.
• CJ Logistics also seeks to expand its e-commerce market share by offering new end-stage delivery services aimed at providing clients with faster and more accurate package delivery.
• CJ Logistics intended to raise $602 million from Samsung SRA Asset Management and financial loans to build the fulfillment center.

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The objective is to increase e-commerce market share

When the covid-19 epidemic hits, many people will be forced to work from home, changing their shopping patterns in the process. They are making more online purchases, particularly on e-commerce platforms. 

CJ Logistics has planned to create fulfillment centers after realizing that there is still plenty of space to grow market share in the e-commerce market. These centers will handle storage, inventory management, packaging, and parcel transfers to Korea’s urban areas. Seoul, Incheon, and Gyeonggi Province are among the municipalities. CJ Logistics, on the other hand, has not yet provided a timeline for the building and completion of these facilities.

These new CJ Logistics hubs will ship packages directly to the clues and have them delivered within a day. This is not the same as ordinary delivery services. The reason for this is that the company’s standard delivery method only uses secondary terminals and takes two to three days. As a result, the fulfillment center’s construction will reduce the time it takes to prepare and deliver goods to clients, boosting service quality.

CJ Logistics also seeks to expand its e-commerce market share by offering new end-stage delivery services aimed at providing clients with faster and more accurate package delivery.

CJ Logistics previously had two fulfillment centers in Gyeonggi Province, one for cold lines in Yongin and a ‘smart’ center in Gunpo that handles parcels using artificial intelligence and logistics robots.

CJ Logistics raises $602 million for the construction of hubs

CJ Logistics intended to raise $602 million from Samsung SRA Asset Management and financial loans to build the fulfillment center.

CJ Logistics will receive around $201 million in cash from Samsung SRA Asset Management. According to The Loadstar’s sources, Samsung SRA raises money by forming investment trusts and soliciting funds from institutional and retail investors. The remaining cash will be borrowed from financial institutions, totaling $401 million.

“In the aftermath of the e-commerce growth, financial investors should expect substantial returns by investing in the developing logistics real estate sector,” CJ Logistics said.

Huyen Tu

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