CJ Logistics Secures Logistics Centers Using Real Estate Funds... "Building Smart Fulfillment"

A bird's-eye view of the Yongin Namsa logistics center purchased by CJ Logistics.

Photo by CJ Logistics

[Asia Economy Reporter Hyunseok Yoo] CJ Logistics is further strengthening its e-commerce logistics competitiveness by stably securing logistics centers in the metropolitan area through real estate funds and implementing cutting-edge AI and robot-based ‘smart fulfillment’.

On the 29th, CJ Logistics announced that it had purchased a logistics center located in Namsa-eup, Yongin-si, Gyeonggi-do, using 356 billion KRW from a real estate fund. CJ Logistics invested 26.8 billion KRW, while the remainder was raised through fund contributions and financial institutions, minimizing the financial burden of logistics investment. Prior to this, in March, CJ Logistics established a real estate fund worth 740 billion KRW with Samsung Financial affiliates to stably secure key logistics hubs in the metropolitan area.

The newly acquired Yongin Namsa Center is a complex logistics center with a total floor area of approximately 132,000㎡ (40,000 pyeong), consisting of one basement floor and five above-ground floors, equipped with both ambient and cold storage, and is scheduled to begin operations next year. Up to 26 trucks can dock simultaneously on each floor, with docking available on all floors, and it offers excellent accessibility to Seoul, being only 40 to 50 minutes from Yangjae IC on the Gyeongbu Expressway.

CJ Logistics plans to build a ‘smart fulfillment’ space automating the entire logistics process by applying advanced systems and facilities such as AI and robots to the Yongin Namsa Center, which is currently under structural construction. They will introduce fixed-route automated guided vehicles (AGVs) and autonomous mobile robots (AMRs) that can move products and boxes independently.

They will apply ‘eco-friendly smart packaging’ technology that recommends and selects optimal boxes based on order information and uses environmentally friendly materials for packaging. Building on the operational know-how of the Gunpo Smart Fulfillment Center, which successfully applies various transport robots and automation facilities, they will implement upgraded innovative technologies.

Based on the Yongin Namsa Center, CJ Logistics plans to offer various delivery services. For customers in the metropolitan area who order products for early morning or same-day delivery, the center will ship products directly to nearby sub terminals without sending them to the hub terminal, enabling faster delivery compared to conventional parcel services that route through hub terminals.

By securing key hubs in the metropolitan area, CJ Logistics can build a denser logistics network and diversify delivery services, further enhancing the function of its ‘converged fulfillment.’ The ‘converged fulfillment’ is CJ Logistics’ differentiated logistics network that connects fulfillment centers, parcel hubs, and sub terminals to provide various delivery benefits to customers nationwide.

CJ Logistics plans to continue establishing various funds to stably secure e-commerce logistics hubs and actively introduce advanced technologies to further elevate service levels.

Ahn Jae-ho, Head of CJ Logistics’ E-commerce Division, said, “We will enhance e-commerce logistics competitiveness by expanding advanced fulfillment centers equipped with various automation technologies,” adding, “As an innovative technology company, we will comprehensively support the logistics of distribution companies and customers based on our unique innovative technologies and provide diverse delivery services to consumers.”

By investing about 7.5% (26.8 billion KRW) of the center purchase price through real estate funds, CJ Logistics minimized the large-scale financial burden of e-commerce logistics investment. Samsung Financial affiliates also invested the same level of common stock, enabling stable investment returns by investing in the logistics real estate market, which is gaining attention due to the growth of the e-commerce industry.