South Korean 3PL CJ Logistics will spend around $457 million building logistics centers in three US locations.
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| CJ says cutting edge technology will be part of the mix, with plans to use more automation, big data and AI, including deploying robots, autonomous forklifts and smart packaging systems. |
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The distribution hubs will be based in Elwood, IN;, Des Plaines; IL and Secaucus, NJ.
With the expansion, CJ plans to increase the volumes of South Korean exports to the US it handles, and also to expand its footprint in North America more generally.
CJ gained a US presence in 2018 with its acquisition of DSC Logistics, a Chicago-based 3PL with a heavy focus on food distribution. Operating for awhile under the DSC banner, in the last few years the DSC brand was retired and replaced with CJ Logistics.
CJ will make the move with the funding help of government-backed logistics financial institution Korea Ocean Business Corp.
According to TheLoadstar.com web site, the new logistics hubs will together offer about 3.9 million square feet.
CJ Logistics and the KOBC signed a memorandum of agreement for what they call the "North America project" at the logistics company's US branch office in Illinois last week.
The Elwood location is adjacent to rail terminals owned by BNSF and Union Pacific, the largest US rail freight carriers. CJ says that will facilitate deliveries throughout the US within 1-2 days.
The Des Plaines hub is near Chicago and O’Hare International Airport, while the Secaucus facility will be near the port of New York/New Jersey and JFK Airport.
Construction on the hubs is scheduled to begin in Q1 24, with phased completion from the first half of 2026 through 2027.
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CJ says cutting edge technology will be part of the mix, with plans to use more automation, big data and AI, including deploying robots, autonomous forklifts and smart packaging systems.
In a press release, CJ Logistics CEO Kang Sin-ho said “We’re committed to supporting our North American customer base, South Korean companies and e-commerce sellers as they enter the US market.”
He added: “By utilizing 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, and expand the ‘K-Wave’ [South Korean pop culture] into the business sector.”
CJ has about 57 warehouses in the US currently, originating in its acquisition of DSC.
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