CJ Logistics has announced that it is expanding its business in the South East Asian logistics market through the introduction of “K-Logistics”. CJ Logistics aims expand its business in the market by localising the Korean parcel platform and build an advanced logistics centre with a daily capacity of 400,000 units.
CJ’s pilot operation has been up and running at the Central Distribution Centre (CDC) in Bangna, Bangkok since the middle of August 2019. The 71,900 sq m central distribution centre is equipped with the same wheel sorters used at logistics centres throughout South Korea, which can sort up to 400,000 parcels per day. The central distribution centre is reportedly the largest in Thailand with a processing capacity of 13% of the total 3m daily shipments in the country.
Thailand’s parcel market is considered by CJ as the business opportunity with the greatest potential due to the spread of mobile devices and the rapid expansion of the e-commerce market. In 2017 e-commerce transactions in Thailand amounted to $23bn, and by some estimates, 50% of total retail sales will take place online by 2020. In pursuit of further e-commerce growth , the Thai government plans to develop the country as a hub of the ASEAN market by promoting high-tech industries and supporting the introduction of e-payment systems in conjunction with the “Thailand 4.0” policy, which is expected to expand the consumer goods logistics market including the parcel industry.
“As the e-commerce market in Thailand grows at more than double-digit rates every year, and the country’s younger generation actively embraces the mobile environment, we are confident about the growth of the parcel business in the country,” said CJ Logistics in a statement.
Source: CJ Logistics
