CJ Logistics, a supply chain and technology company based in South Korea, announced a partnership with the Korea Ocean Business Corp. to construct large-scale logistics centers in the U.S. through a public-private collaboration, including a facility in Secaucus.
The venture, known as the “North American Project,” entails the construction of three sites owned by CJ Logistics America, located in key logistics and distribution hubs such as New Jersey and Chicago, with the sites totaling 3.875 million square feet.
With a total investment of approximately $457 million, these logistics centers will prioritize handling the import and export cargo of global and South Korean companies, facilitating their overseas expansion and trade activation.
The first-of-its-kind public-private partnership between CJ Logistics and KOBC, a South Korean government entity, will increase South Korean investment in the U.S. and create new jobs for Americans.
These sites collectively span an area equivalent to 50 international standard soccer fields. While CJ Logistics plans to contribute the land, KOBC will secure funding for the construction of the logistics centers.
CJ Logistics will assume responsibility for the operation of these centers. The investment commitment agreement is expected to be signed within the third quarter of this year, and construction is scheduled to begin in the first quarter of 2024, with a phased completion targeted from the first half of 2026 to 2027.
Strategically located in three major U.S. cities or logistics hubs, CJ Logistics’ sites offer significant advantages. For instance, Secaucus is situated near New York Harbor, JFK Airport and New York City, and offers access to other major consumer markets.
With the development of these strategic hubs, CJ Logistics is optimizing its global logistics model to meet customer needs for integrated, end-to-end supply chain solutions. It will generate synergy by connecting the newly constructed logistics centers with its existing network of 57 operational logistics centers across the U.S. This connection will act as a catalyst for innovative growth in the business conducted in the U.S.
The North America Project holds significant meaning, as it represents a joint effort between a government entity and a private enterprise to support South Korean companies’ entry into the U.S., the world’s leading economic market, and raise their global competitiveness.
The project is projected to generate 500 permanent jobs, along with additional employment opportunities, contributing to the strengthening of the U.S.-Korea economic alliance.
Commenting on the project, Sin-ho Kang, CEO of CJ Logistics, said: “We are committed to supporting our North America customer base, South Korean companies and e-commerce sellers as they enter the U.S. market. 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’ into the business sector.”
