"Middle East E-commerce Rises" CJ Logistics Builds Logistics Center in Saudi Arabia

CJ Logistics announced on the 11th that it has signed a business agreement with the local Civil Aviation Authority to build a Global Distribution Center (GDC) in Saudi Arabia. A GDC is a hub where global e-commerce companies store products in advance at delivery points in neighboring countries, enabling fast delivery once orders are received.

The Saudi GDC to be built by the company will be located in the integrated logistics zone at Riyadh Airport. It will be responsible for international delivery in the Middle East region for the health food shopping mall iHerb. It will handle deliveries for orders received from nine Middle Eastern countries including Saudi Arabia, the United Arab Emirates (UAE), and Kuwait. The company stated, "Based on advanced logistics technology capabilities utilizing robots, data, and artificial intelligence, we will target the cross-border courier market worth 100 trillion KRW annually."

From the front row left, Lumai Al Lumai, Deputy Minister of Transport and Logistics of Saudi Arabia; Fuat Miskabi, major shareholder of CJ ICM; Ayman Al Mutairi, Deputy Minister of Commerce of Saudi Arabia; Park Jun-yong, Ambassador to Saudi Arabia; Miri? Chang, COO of iHerb; Kang Shin-ho, CEO of CJ Logistics; Majid Al Kassabi, Minister of Commerce of Saudi Arabia; Abdulaziz Al Duwailiz, CEO of Saudi General Authority of Civil Aviation; Kang Byung-gu, Head of Global Division at CJ Logistics; and Abdulla Al Funtuq, Deputy Director of Strategic Development at Saudi Customs, are cutting the tape after the agreement ceremony on the 10th (local time).

Thanks to its fast delivery system, the GDC has become a new trend in the cross-border e-commerce market. CJ Logistics plans to invest 60 billion KRW to build a facility with a total floor area of 18,000 square meters and a daily processing capacity of 15,000 boxes. The company also operates a GDC in Incheon, South Korea, dedicated to iHerb's deliveries in the Asian region. CJ Logistics revealed that it signed a long-term contract with iHerb for eight years prior to establishing the Saudi GDC.

Advanced technologies will also be applied. Recently, Saudi officials visited the company's smart logistics center in Gunpo, South Korea, and praised the advanced robotic technologies they observed. A company representative evaluated, "While securing a stable revenue base, we have laid the foundation to expand cross-border e-commerce (CBE) logistics business to Europe and North Africa by establishing a Middle East logistics hub in Saudi Arabia."

The company emphasized that the Saudi GDC allows goods to be imported into the local domestic market. South Korea does not permit goods stored in the GDC to be imported domestically. This is expected to be advantageous in targeting the largest e-commerce market in the Middle East, Saudi Arabia. Saudi Arabia has emerged as a trade and transportation hub, aiming to become a global logistics hub connecting Asia, Europe, and Africa.

Kang Shin-ho, CEO of CJ Logistics, said, "The Saudi e-commerce market has the richest growth potential in the Middle East along with the geographical advantage of connecting Africa and Europe. We will spare no effort in providing cutting-edge logistics technology and infrastructure support so that the Saudi GDC can establish itself as a logistics hub leading the Middle East e-commerce market."

This content was produced with the assistance of AI translation services.