LVMCHoldings Partners with CoconutSilo to Establish Logistics Platform JV

KokKok Express's key executives and employees are taking a commemorative photo with Seungyong Kim, CEO of Coconut Silo, and Nouxay Vensavanh, CEO of Korao KDC, who attended the opening ceremony. Photo by LVMCHoldings

[Asia Economy Reporter Jang Hyowon] LVMCHoldings announced on the 21st that it has established a joint venture (JV) with mobility company Coconut Silo to provide one-touch logistics solutions in Laos and held an opening ceremony in Vientiane, Laos.

Coconut Silo is a cargo truck-specialized platform company that initially started as an in-house venture of Hyundai Motor Group and later spun off.

Through this collaboration, LVMCHoldings and Coconut Silo plan to provide last-mile delivery services that deliver goods to the final destination along with cargo brokerage. Starting from the capital Vientiane, they plan to expand the service area throughout Laos and aim to extend cross-border logistics among Indochina Peninsula countries in the future.

The logistics market in Laos is growing at an average annual rate of 8.5%, and Laos has a geographical advantage for import and export as it borders China, Myanmar, Thailand, Vietnam, and Cambodia. Additionally, the freight volume of the high-speed railway connecting Kunming, China, and Laos, which opened this month, surpassed 10 million tons within one year of operation, demonstrating that Laos is emerging as a logistics hub in the Indochina Peninsula.

The two companies plan to launch the service KokKok Express at the end of January through the joint venture. KokKok Express is an integrated platform offering services ranging from simple parcel delivery to long-distance cargo transportation between regions and is the main business of the joint venture.

Celebrating its 25th anniversary, LVMCHoldings has accumulated various infrastructure and business know-how through long-term operations in Laos. By utilizing LVMCHoldings' own distribution network and offline bases and combining Coconut Silo's ICT technology, they expect to provide high-quality logistics platform services targeting the Indochina Peninsula countries.