Two South Korean companies are joining forces to invest $457 million into large-scale logistics centres in the US.
CJ Logistics and Korea Ocean Business Corporation have announced a strategic partnership to construct the centres through a public-private collaboration.
The initiative will aim to handle the import and export cargo of both global and South Korean companies, facilitating their overseas expansion and trade. It is also, the companies said, offers the chance to strengthen the economic alliance between the United States and South Korea by fostering local investment and job creation.
The venture will focus on building centres in key distribution hubs in Chicago and New Jersey. While South Korean companies have made recent investments in various sectors such as electric vehicles, batteries, and semiconductors in the US, this collaboration between the public and private sectors is the first of its kind.
“We are committed to supporting our North America customer base, South Korean companies and e-commerce sellers as they enter the US market,” said CJ Logistics CEO, Sin-ho Kang.
“By utilising our cutting-edge logistics infrastructure and operational capabilities, we aim to increase customer value, serve as a strategic partner to our customers who can benefit from global and multimodal solutions.”
In the first quarter of this year, South Korea’s exports to the US recorded $28.6 billion, a 3.5 per cent increase compared to the same period last year. The US ranked as South Korea’s largest trade surplus country during this period, with a trade surplus of $7.2 billion, according to the Korea Trade Statistics Promotion Institute.
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